Portugal to exit bailout programme in mid-May

Brussels, May 6 (IANS) European Commission (EC) President Jose Manuel Barroso said Portugal is to exit from international bailout programme in mid-May after meeting with eurozone leaders Monday.

"On the 17th of May, Portugal will exit the economic and financial adjustment programme put in place in 2011 with the support of the European Union and the International Monetary Fund," Xinhua quoted Barroso as saying in a statement published on the EC website.

The EC president's announcement echoed the decision made by the Portugese government and confirmed by its Prime Minister Pedro Passos Coelho.

On Sunday, in a televised speech, Passos said his debt-laden country would have a clean exit from the three-year 78-billion-euro bailout programme with the international lenders this month without applying for a precautionary credit line and restoring complete sovereignty over financing in the world market.

The clean exit from the bailout "possible thanks to Portugal's rigorous implementation of the programme over the last three years, which has yielded impressive results," Barroso said, stressing that "most of the serious economic imbalances that led to the crisis have been, or are being, corrected".

"The foundations for sustainable growth have been laid. Portugal will now walk with his own feet," the EC head added.

"This is not only a success for Portugal but a success for Europe," Barroso noted, citing that Europe has provided two-thirds of the total financial assistance granted to Portugal in 2011.

The statement was released in Brussels after the regular meeting of the Eurozone leaders, President of the European Council Herman Van Rompuy, President of the ECB Mario Draghi and President of the Eurogroup Jeroen Dijsselbloem, along with representatives of other Euro related institutions.