Portugal reaches deal on €78bn bail-out

It was announced by the Portugesue Prime Minister José Sócrates on the 3 May 2011 that Portugal had reached an agreement with the European Union and the International Monetary Fund on a €78bn financial rescue package, becoming the third eurozone country to be bailed out of a sovereign debt crisis.

EU officials want the package to be approved at a 16-17 May 2011 meeting of EU finance ministers. But approval could be delayed by disagreements over the package among Finnish political parties, who are trying to form a new coalition government.

Legislation required to implement the programme will not go before the Portuguese parliament until after the June 2011 general election.

European Commission: RAPID: MEMO/11/275: Statement on Portugal by Olli Rehn, European Commissioner for Economic and Monetary Affairs, and Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF) http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/275&format=PDF&aged=0&language=EN&guiLanguage=en

ESO: Background information: Sócrates calls for Portuguese bail-out http://www.europeansources.info/record/socrates-calls-for-portuguese-bail-out/

ESO: Background information: Finns threaten Portugal rescue plans http://www.europeansources.info/record/finns-threaten-portugal-rescue-plans/

BBC News, 3.5.11: Portugal reaches deal on EU and IMF bail-out http://www.bbc.co.uk/news/business-13275470

Deutsche Welle, 3.5.11: Portugal receives more lenient terms on 78 billion euro bailout deal http://www.dw-world.de/dw/article/0,,15047416,00.html

France24, 3.5.11: Portugal reaches deal on bailout with EU and IMF http://www.france24.com/en/20110504-imf-eu-portugal-bailout-agreed-but-cross-party-support-needed

Público, 11.5.11: EU to gain 1.3 billion from Portugal bailout (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/647931-eu-gain-13-billion-portugal-bailout

EurActiv, 5.5.11: Portugal's opposition to back bailout deal http://www.euractiv.com/euro-finance/portugal-seen-backing-bailout-news-504547

ECB: Press Release, 5.5.11: ECB assesses the Portuguese economic and financial adjustment prog http://www.ecb.int/press/pr/date/2011/html/pr110505_1.en.html

EurActiv, 6.5.11: 'Tough but fair' Portugal bailout heralds recession http://www.euractiv.com/en/euro-finance/tough-fair-portugal-bailout-heralds-recession-news-504581

IMF: Press Release, No.160, 2011: IMF Reaches Staff-Level Agreement With Portugal On a €26 Billion Extended Fund Facility Arrangement http://www.imf.org/external/np/sec/pr/2011/pr11160.htm

EUObserver, 6.5.11: Portuguese bail-out expected to push country into recession http://euobserver.com/9/32276

Spiegel Online International, 5.5.11: 'Portugal Needs the Strength to Reinvent Itself' http://www.spiegel.de/international/europe/0,1518,760872,00.html

BBC News, 5.5.11: Portugal recession 'will last two years' http://www.bbc.co.uk/news/business-13293706

Jornal de Negócios, 4.5.11: Austere New Year http://www.presseurop.eu/en/content/article/634081-austere-new-year

IMF: Portugal and the IMF http://www.imf.org/external/country/prt/index.htm

European Commission: DG Economic and Financial Affairs: EU Economic Situation: Economies of the EU Member States: Portugal http://ec.europa.eu/economy_finance/eu/countries/portugal_en.htm

EUObserver, 4.5.11: Lisbon, troika agree details of €78bn bail-out http://euobserver.com/9/32264

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