Portugal eyes end of bailout program

Portugal is three months away from getting its financial sovereignty back after three years of being told what to do by foreign bailout creditors.

The Portuguese are less than three months away from their big day - May 17 - when they expect to get financial sovereignty back after three years of being told what to do by foreign bailout creditors.

In return for the 78-billion-euro ($A119.91 billion) rescue that has since 2011 prevented the country's bankruptcy, Portugal consented to an economic crash diet - deep cuts in pay and pensions and welfare rights, steep tax increases and an end to long-standing labour entitlements.

Countries which share the euro currency are eager for Portugal to show it is financially fit again.

Its recovery would help the bloc draw a line under its debt crisis and open the door to growth that could have a beneficial knock-on effect around the world.

With the eurozone's financial storm clearing, few reckon Portugal will need more cash, like Greece did.

But if there are doubts over its ability to go it alone, the bailout creditors could decide to grant it a protective line of credit that would come with strings attached - more oversight and austerity.

Bailout inspectors were due to arrive on Thursday for their next-to-last assessment on the issue.


2 min read

Published

Updated

Source: AAP



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