Portugal has become the third country in Europe to accept an international financial bailout to deal with mounting sovereign debts, increasing concerns about the stability of the region, according to The Wall Street Journal. On Wednesday, Portuguese Prime Minister José Sócrates announced that the European Union and International Monetary Fund will provide €78 billion in aid to the country over three years. Sócrates described the deal as being friendlier than other agreements, although some key details have not yet been disclosed.
Negotiations over the arrangement took nearly three weeks, which is longer than discussions over the bailout packages for Greece and Ireland. The Portuguese Prime Minister said, “The international institutions recognize that the Portuguese situation isn’t like the situation of other countries,” adding, “The government has managed a good agreement. It is an agreement that defends Portugal.” The package is also said to provide a portion for the country’s banking system, in case banks need help boosting capital ratios in the coming years. Full approval and disclosure of details is expected soon.