Portugal is to make a decision on its bailout exit strategy by May 5, in time for the country's scheduled Eurogroup meeting, the Portuguese government announced Thursday.
The debt-laden country is nearing the end of the bailout program it signed with its international creditors three years ago, but divisions have emerged within the government as to what strategy it should follow.
Portugal is scheduled to follow Ireland's footsteps and end its bailout program on May 17, but it seems unlikely to manage a " clean exit," according to the announcement.
A precautionary credit line seems like a more likely option, and would mean more supervision and austerity for the country to be able to finance itself in the bond markets and achieve sustainable growth.
Following a council of ministers meeting Thursday, government spokesperson Marques Guedes pointed out that Ireland hadn't announced its bailout exit strategy till a day before the end of its program and Portugal would take the same approach.
The meeting was intended to discuss measures required to reach next year's deficit target of 2.5 percent, but ended to no avail.
Guedes also challenged claims made by European Union Economics Commissioner Olli Rehn, who has maintained a "better safe than sorry approach" to Portugal seeking a credit line.
Rehn said Wednesday that Finland, his home country, and not Germany, was to blame for exerting pressure on Portugal to go for a "clean exit" like its neighbor Greece.
Portugal had had no contact with the Finnish government, according to Guedes.
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