Portugal is to exit its three-year €78bn ($10.82 billion) bailout without an emergency backstop, in a remarkable turnround for a country that only six months ago seemed destined for a second rescue programme.
Portugal follows Ireland as the second eurozone country to opt for a clean exit from a punishing rescue programme. An announcement by Pedro Passos Coelho, the prime minister, is expected before a meeting of eurozone finance ministers on Monday, just weeks before the programme comes to an end on May 17, according to officials involved in the bailout talks.
The "troika" of international lenders – the European Commission, International Monetary Fund and European Central Bank – had urged Lisbon to consider a line of credit as an emergency safety net, especially given its debt redemptions over the next two years. But Portugal's success in raising cash in the private markets has convinced the government that such assistance is unnecessary.