Portugal poised to leave rescue program

|By:, SA News Editor

Portugal is set to exit its international bailout program tomorrow three years after it requested a €78B ($107B) rescue.

The development means that Portugal won't have to answer to the Troika, although Prime Minister Passos Coelho has pledged to continue with the fiscal responsibility so that the government can "maintain financial stability." He also wants to "boost the reform momentum."

With the economy contracting in Q1 and debt of €214B ($293B), Portugal still faces tough times.

"There will now be two or three decades of lean times for the state, which will have to purge that debt burden," says asset manager Diogo Teixeira. "The debt burden is sustainable, but it's heavy."

ETF: PGAL