The Portuguese prime minister announced on April 6 that he would seek a bailout, becoming the third of the PIGS countries (Portugal, Ireland, Greece, and Spain) to do so. He is expected to formalize his request today. According to Reuters, Portugal's bailout will total $122 billion.
Portugal has been trying for some time to implement austerity measures strict enough to chip away at the country’s deficit-to-GDP ratio and avoid a bailout. The goal is to bring the deficit down from 7.3 percent in 2010 to 4.6 percent this year. Efforts to implement austerity measures led to a government collapse in late March, making it less likely the country can work its way out of its deficit via spending cuts.
The bailout is expected to come with austerity conditions similar to those requested of Greece and Ireland.
