The European Union will meet today to discuss the terms of Portugal’s bail-out package following the countries request for aid yesterday.
But it is doubtful whether Portugal’s caretaker government can agree to austerity measures that would be a condition of the loan, according to the BBC.
Portugal’s out-going Prime Minister Jose Socrates’ government collapsed after it failed to win support for proposed austerity measures last month.
Ireland’s bail-out package took around six weeks to negotiate, which would take Portugal up to its elections, on June 5.
The Financial Times reports Chancellor George Osborne is preparing to make more than £4bn of British-backed loans available to Portugal.
It states Britain might guarantee up to £3bn through the European financial stability mechanism and between £1bn and £1.5bn as a shareholder in the International monetary Fund.