Portugal will seek nearly €90 billion under a bailout package from the European Union and the International Monetary Fund (IMF), The Wall Street Journal reports. The funds may be used to cover Portugal’s short-term debt obligations, cash shortfalls of public-service companies and repay loans made to nationalized bank, Banco Portugues de Negocios.

Portugal, which has to pay €4.2 billion of debt in April 2011, will also use the funds to cover potential capital shortfalls of local banks. Portugal may also seek nearly €10 billion in June to help cover short-term liabilities.

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