5 May 2014

Portugal to exit bailout loan

8:36 pm on 5 May 2014

Portugal will exit its three-year €78 billion bailout on 17 May without needing a standby line of credit, Prime Minister Pedro Passos Coelho says.

Portugal Prime Minister Pedro Passos Coelho.

Portugal Prime Minister Pedro Passos Coelho. Photo: AFP

The loan had been granted in May 2011 by the European Union and the International Monetary Fund.

Since then Portugal has stuck to the tough measures required by the bailout.

"The government had decided to exit the assistance programme without turning to any kind of precautionary programme," Mr Coelho told national television, the BBC reports.

The decision was the "best for the interests of Portugal" after the country "regained its credibility," he added.

The announcement was made after a meeting of the cabinet.