According to Prime Minister Passos Coelho, Portugal will not renegotiate the terms of its bailout, but the government will watch out for any developments which could benefit the country.
A renegotiation of the terms of Portugal’s bailout is not on the table, but Portugal will keep a close eye on the developments in Europe concerning this issue, said Prime Minister Pedro Passos Coelho after the official celebrations of Portugal Day on 10 June, in Lisbon.
“We will keep an eye on how the specific programme for Spanish banks will unfold and, in the case of exceptional conditions which should be shared by the other countries under assistance, I don’t have any doubts” that a renegotiation “will take place”, he said, quoted by news agency Lusa.
According to Lusa tough, the prime minister stressed that at this time “there are no reasons to ask for new conditions for Portugal.”
After weeks of contradictory statements, the Spanish government was forced to ask for a bailout to shore up its ailing banking sector after the burst of a property bubble which produced billions of toxic assets.
The Eurogroup meeting between the eurozone finance ministers approved Saturday afternoon a €100bn loan for Spanish banks after the country was unable to tap the markets at sustainable rates to pay for the damages from its own treasury.
This ‘soft’ bailout, which does not involve a direct meddling of Spain’s state affairs and thus avoids the imposing draconian austerity measures ruled by the infamous troika, has reportedly prompted Ireland to consider a request for a renegotiation of the terms of its own bailout, according to European sources quoted by news agencies France Presse and Lusa.
Ireland was also affected by a real estate bubble which forced the state to ask for a direct bailout to recapitalise its banks in 2010.
The nature of the intervention itself, a direct bailout of the Irish state, differs from the bailout provided to Spain, which was free from the stigma of an all-out intervention.
Passos Coelho, however, said that “the Irish finance minister did not pose any question” in the Eurogroup meeting about changes to the terms of the country’s bailout, according to Lusa.