17 May 2011

Portugal rescue package approved

7:34 am on 17 May 2011

Finance ministers in the 17-nation eurozone have agreed to back a 78 billion euro bailout package for Portugal.

The group, which has been meeting in Brussels, said the loan was to safeguard financial stability in the euro area and the EU as a whole, the BBC reports.

Under the deal, the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility (EFSF), and the IMF will each will contribute 26 billion euros.

For its part, Portugal has agreed to reform its health care system, and begin privatisations to raise capital.