Portugal's PM rejects bailout plan

Source: Press TV
http://www.presstv.ir/detail/159419.html


Portugal has dismissed a recent report that it is under pressure to seek a bailout from the European Union and the International Monetary Fund (IMF).

Portuguese Prime Minister Jose Socrates on Sunday rejected speculation over the need for a euro rescue fund bailout after German magazine Spiegel reported at the weekend that France and Germany were urging the country to apply for the eurozone aid.

Socrates emphasized that his country is achieving better results with income as well as expenditure, giving assurances that Portugal would meet its 2010 budget targets.

Portuguese President Anibal Cavaco Silva also expressed hope that his country would not have to resort to the eurozone rescue fund, saying that he was astonished by the Spiegel report.

Spiegel had also reported that Paris and Berlin want members of the eurozone to state that they are ready to do whatever it takes to save the currency, including expanding a 750 billion euro ($982.64 billion) rescue fund.

Lisbon has been hit hard by the global economic crisis, suffering from a rising budget deficit.

Economists say if Portugal would agree to a bailout, such a package could be valued at between 50 to 100-billion euros.

Greece and Ireland were bailed out by the IMF and the EU last year.