Portugal gives green light to €78bn EU/IMF bailout

PORTUGAL’S outgoing government and opposition parties appear to have accepted the terms of a €78 billion EU/IMF bailout which is likely to come at a lower interest rate than Ireland’s.

The rate will be decided at the next meeting of eurozone finance ministers on May 16/17, but the loan — which the Portuguese need by 15 June to repay a €6bn debt — could still be vetoed by the Finnish parliament.

The austerity measures to reduce the country’s deficit to 5.9% this year (Ireland’s target is 9.5%) are similar to those rejected by the centre right main opposition party which led to the collapse of the government last month.