Portugal Reaches Bailout Deal
Will be worth about $116 billion over three years
By Kate Seamons,  Newser Staff
Posted May 4, 2011 3:33 AM CDT
Updated May 4, 2011 5:54 AM CDT
People in a restaurant watch Portuguese interim Prime Minister Jose Socrates, left on screen, with Finance Minister Fernando Teixeira dos Santos, as they address the country.   (AP Photo/ Francisco Seco)

(Newser) – Portugal pleaded for a bailout, and now it's got one. The hard-up nation has negotiated a bailout from the EU and IMF worth about $116 billion. The three-year loan is a "good agreement that defends Portugal," according to caretaker PM Jose Socrates, who added that Portugal would receive an extra year—until 2013—to cut its government deficit below the EU's 3% ceiling. But the AP notes that the extension was necessary after the country disclosed a much larger than expected budget shortfall for last year.

Portugal is the third member of the 17-nation eurozone, after Greece and Ireland, to take a bailout. One of western Europe's poorest countries, Portugal has said it will run out of money next month. Click for more on the country's money woes.
 

My Take on This Story
Show results without voting  |  
14%
0%
21%
7%
7%
50%