Portugal's caretaker prime minister said on Thursday he hoped to reach a bailout deal with Europe and the IMF as planned by mid-May, adding the negotiations need to be “quick but discreet”.
“We have to make an effort to reach an understanding so that a deal can be taken to the Ecofin (euro zone finance ministers) meeting on May 16,” Jose Socrates told TSF radio.
The European Commission poured cold water on Wednesday on a media report that EU and IMF terms for a bailout would be ready and submitted to the caretaker government by the end of this week.
Portugal this month became the third euro zone country to seek foreign aid, following Greece and Ireland, after its minority government collapsed in March, sending the heavily indebted country's borrowing costs soaring.
Socrates also said he expected Finland to approve the bailout, which is likely to reach 80 billion euros, despite a strong showing by the eurosceptic True Finns party in the Finnish election this month, which has threatened to scupper any deal.
Socrates urged the main opposition party, the Social Democrats, to back the terms of a future package.
Officials from the European Commission, the European Central Bank and IMF arrived in Lisbon earlier this month to go over Portugal's accounts and establish terms for a loan.
The terms could include austerity measures like those seen in Greece and Ireland, where taxes have been raised and public sector salaries cut. Reforms of Portugal's labour market may also be included to boost competitiveness. - Reuters