Portugal exit plan unresolved amid bailout review

Portugal’s lenders yesterday started their final evaluation of its performance under its bailout, with further reforms on the agenda and the question of a standby loan when it exits the programme next month still unresolved.

In a sign of the review’s forward-looking bias, troika inspectors held one of their first meetings with the main opposition Socialists. Opinion polls put the party on track to win next year’s general election.

The IMF has said a political consensus on not raising expenditure after the rescue programme ends is vital. The fund said on Monday the recent return of economic growth had boosted Portugal’s near- term prospects, but more needed to be done to free up the jobs market to cut unemployment and labour costs.