6 Jun 2012

Pass for Portugal

10:01 am on 6 June 2012

Portugal has passed a fourth review of its continuing spending cuts and economic reforms.

Finance Minister Vitor Gaspar said Portugal had fulfilled all the bailout criteria.

The BBC reports the review clears the way for the government to receive another 4 billion euros ($US5 billion) of funds from the EU, European Central Bank and the International Monetary Fund.

Portugal is to get 78 billion euros in total under the bailout, agreed in May 2011.

In another development, the finance ministry said it would inject more than 6.65 billion euros into three banks, BCP, BCI and CGD, to improve their liquidity.

Portugal has already cut public sector wages and raised taxes to reduce its budget deficit and deal with its economic crisis.

Last month, four of the country's 14 public holidays were scrapped. Two religious festivals and two other public holidays will be suspended for five years from 2013.