Eurozone member Portugal has reached a "good agreement" on a three-year bailout package worth 78 billion euros from the EU and IMF, outgoing Prime Minister Jose Socrates said Tuesday.
"I would like to announce to the Portuguese people that the government has reached agreement today with the representatives of international institutions on the programme of financial aid to our country," Socrates said in a televised address.
"The government has reached a good agreement that defends Portugal," he said.
His office later said Portugal is seeking 78 billion euros ($116 billion) in foreign assistance under the programme.
Officials from the "troika" of the European Central Bank, European Union and International Monetary Fund have been in Lisbon for two weeks negotiating the terms of the financial rescue package.
Socrates said the plan called for a loosening of the deficit reduction targets for Portugal, whose economy is expected to shrink this year as it implements austerity measures.
Lisbon was forced to ask for a bailout last month after Socrates' government resigned following a parliamentary dispute and rejection of a fourth round of austerity measures sent its borrowing costs prohibitively higher.
Investors had been steadily asking for higher rates of return to lend money to Portugal, which has to roll over billions in maturing debt this year and has a high budget deficit.
Lisbon has to have the bailout package in place by June 15 when it has to repay nearly 5.0 billion euros ($7.3 billion) in maturing debt.
Portugal is the third eurozone member to seek international assistance following Greece's 110-billion-euro rescue one year ago and Ireland's 85-billion-euro bailout last November.
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