Portugal to discuss bailout terms

The Portuguese government says it does not know yet when it will send its formal request for a bailout to European authorities.

An official, who spoke on condition of anonymity, told the national news agency Lusa that the government will not request the financial help until it has discussed the terms of a bailout with opposition parties.

The official told Lusa the government must first determine what guarantees debt-stressed Portugal can offer in return for a financial rescue package.

Portugal confirmed on Wednesday that it is following Greece and Ireland in asking for outside financial from Europe’s bailout fund and the International Monetary Fund.

Prime minister Jose Socrates said his country will ask for a bailout due to its high debts and difficulty raising money on international markets.

Mr Socrates said: “The government decided today to ask the European Commission for financial help.”

Analysts expect Portugal will need up to €80bn.

A bailout had long been expected as Portugal, one of the 17-nation eurozone’s smallest and weakest economies, struggled to finance its economy.