Portugal’s Finance Minister said the decision on how and when to exit the bailout should be taken “in April” and that the choice of having a ‘precautionary programme’ or a 'clean exit' remains open.
The position of Maria Luís Albuquerque, was made clear at a press conference after a Eurogroup meeting in Brussels.
The minister assured that the date for Portugal's exit from the bailout programme of economic and financial assistance, which officially ends on May 17th, will be confirmed “a few weeks before" that date i.e. sometime in April or early in May.
Asked about the opinion of the European Commission president José Manuel Barroso who advocates a back-up ‘precautionary programme’ for Portugal, Maria Luís Albuquerque reiterated that "it is too early to say" and stressed that "the government wants to wait for the final economic data for 2013 to come in first.”
"We respect those opinions, but they are not a result of a discussion with us," she said, putting Barroso in his place.
“In truth, I have not had any conversations with respect to any precautionary programme ... I only know what is in the newspapers," added Albuquerque saying that the programme ends on May 17th so there may possibly be a decision in April, but in early May there is a Eurogroup meeting - either way, the decision will be taken a 'few weeks' before the official end date, as happened with Ireland.
The government will not be pushed into announcing a precautionary line of credit to ease Portugal's exit from the bailout programme. The concern is that by doing so, international markets will push up the interest rates on Portugal's government bonds. The closer to the exit date the better if such a line of credit is needed.
Alberquerque is sensible to wait for the final figures to come in from last year as, if the figures are good, the international financial markets will be likely to support Portugal at a sensible set of interest rates.
