EU ministers discuss Portugal bailout

European Union finance ministers are meeting in Hungary in a bid to sort the terms of a multi-billion euro loan to Portugal after the debt-laden Lisbon government formally requested a bailout.

8 April 2011, 12:00am

1 min read

The ministers were expected to discuss both the size of the loan and the terms of its repayment at the two-day meeting near the Hungarian capital Budapest. Around two-thirds of the cash will come from the EU while the rest will be covered by the International Monetary Fund.

Although there has been no exact figure, Belgium predicted around €80 to €85 billion would be needed by Portugal which finally succumbed to pressure for a bailout as the cost of borrowing soared.

Portugal is the third eurozone country after Greece and Ireland to request a bailout and its plight has increased speculation that Spain -- the fourth largest economy of the 17 countries which use the euro single currency -- will also ask for help.

Olli Rehn, the European Union's finance commissioner, confirmed that the aid request had been received from Portugal as he arrived at the talks in Godollo, Hungary.

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Prepare to bail out Portugal. This means putting your hands in your pockets to pick up the last cents or else contract debt to give the money to Portugal. the Spain will follow, followed by Italy followed by ....... and you can kiss all your money including that already loaned to Greece and Ireland good bye.