Portugal to exit rescue program without insurance of credit line

|By:, SA News Editor

Portugal plans to exit its international bailout program without taking a precautionary credit line from its lenders, the EU and the IMF. The move, which follows a similar step by Ireland, will cut the oversight that Portugal has had to endure.

Instead, Portugal will rely on international debt markets for financing after it receives the final tranche of its €78B ($108B) rescue package in June. Ten-year yields are flat at 3.63% vs over 18% in January 2012.

While the exit from the assistance program after three years marks a turnaround in Portugal's fortunes, economic growth remains fragile, and unemployment and debt high.

The PSI 20 is -0.1%.