European finance ministers have signed off on 78 billion euros ($110 billion) in rescue loans to support Portugal's budget and, in turn, the troubled euro currency.
The ministers said in a statement released in Brussels that one-third of the package will be financed by other eurozone states. Another third is to come from a fund backed by the EU budget while the final 26 billion euros is to be loaned by the International Monetary Fund (IMF).
In return for the help, the Portuguese government -- which faces an election on June 5 -- will be required to reduce the country's budget deficit from the 2010 level of 9.1 percent of gross domestic product to below the EU limit of 3 percent by 2013.
Today's finance ministers' meeting in Brussels came amid the unfolding case involving allegations of sexual assault against Dominique Strauss-Kahn, the chief of the IMF -- which finances a third of eurozone bailouts.
compiled from agency reports
The ministers said in a statement released in Brussels that one-third of the package will be financed by other eurozone states. Another third is to come from a fund backed by the EU budget while the final 26 billion euros is to be loaned by the International Monetary Fund (IMF).
In return for the help, the Portuguese government -- which faces an election on June 5 -- will be required to reduce the country's budget deficit from the 2010 level of 9.1 percent of gross domestic product to below the EU limit of 3 percent by 2013.
Today's finance ministers' meeting in Brussels came amid the unfolding case involving allegations of sexual assault against Dominique Strauss-Kahn, the chief of the IMF -- which finances a third of eurozone bailouts.
compiled from agency reports