UK will make no bilateral loan to Portugal-Osborne

LONDON, April 8 (Reuters) - Britain will offer no bilateral loan to Portugal which has applied to the European Union for financial help, UK finance minister George Osborne said on Friday.

Speaking after a meeting of European finance ministers in Budapest, Osborne said: "I made it clear that unlike the Irish case the UK will not be making a bilateral loan to Portugal - British taxpayers' money will not be lent directly to Portugal."

He reiterated the need for rapid action to cut Britain's budget deficit -- a point of contention between the coalition government and the opposition Labour party.

"Sitting around the table this afternoon discussing the bailout of yet another country that didn't have a credible plan to deal with its high budget deficit was another reminder that Britain's deficit deniers are playing with fire," he added.

(Reporting by Christina Fincher)