Portugal has agreed the details of its anticipated bailout with the international community as its finances become increasingly stretched.
Jose Socrates, the country’s caretaker prime minister, revealed in a televised address last night that the European Union and the IMF have offered Portugal a £70 billion financial rescue package.
This means the country will be the third member of the eurozone to have received bailout funding for a sovereign debt crisis, following Greece and Ireland.
Socrates said that Portugal will have to reduce its budget deficit to 5.9 per cent of GDP this year, 4.5 per cent in 2012 and 3 per cent in the following year as part of the package’s terms.
The country originally planned to slash its deficit to 4.6 per cent of GDP in 2011, prompting Socrates to say the deal was a “good agreement” for the country.