The Portuguese Minister of Economy recently stated that the country will seek to negotiate a precautionary credit line with its international lenders early next year and is confident that it will not need to request a second bailout program.
After the current Portuguese assistance program expires in mid-2014, the country will need to return to the bond market for financing. Many analysts believe that the country may need some form of further support from the European Union.
Minister of Economy Antonio Pires de Lima stated, “We still have some work to do and need to make some progress. However, our goal is to begin negotiations on a precautionary program in the first few months of 2014.”
Portuguese Deputy Prime Minister Paulo Portas stated last month that the country needs to end the “period of being a protected nation” under the current assistance program, and that a standby loan would be a completely different arrangement, acknowledging at the time the possibility of such a plan.
Pires de Lima acknowledged that the international community has a “perception problem” regarding Portugal, but dismissed it, stating there is no reason to be pessimistic about the country.
He further added, “I really do not think we will need a second (bailout) program.”
