Portugal bailout review completed: government

LISBON Sun May 12, 2013 4:17pm EDT

People work at a call center in Lisbon April 22, 2013. REUTERS/Jose Manuel Ribeiro

People work at a call center in Lisbon April 22, 2013.

Credit: Reuters/Jose Manuel Ribeiro

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LISBON (Reuters) - Portugal's government said on Sunday its EU and IMF lenders had concluded work on the latest bailout review, indicating there were no outstanding obstacles for Lisbon to receive the next 2 billion euro tranche of the rescue package.

The review, which had been practically sealed in March, hit a snag early last month when the constitutional court threw out some of this year's austerity measures. But the government presented a plan to compensate for those, along with wider deficit reduction steps until 2015 worth 4.8 billion euros.

Representatives of the lenders were in Lisbon last week to pore over the spending cuts.

"The cabinet met today to be briefed on the completion of the works related to the seventh evaluation and confirm the conditions necessary to seal it," the government said in a statement after an extraordinary cabinet briefing.

Finance Minister Vitor Gaspar will present the final terms at the meetings of EU and euro zone finance ministers that begin in Brussels on Monday, it said.

By getting its deficit-reduction plan back on track, Portugal also expects to get a full EU approval this week for an extension of its rescue loan maturities, which is aimed and helping it regain full access to the debt market.

Portugal last week issued its first 10-year bond since the bailout, which brought its debt yields to their lowest levels since 2010. Still, concerns remain over the country's deep recession and a growing opposition to the austerity program mandated under the bailout.

(Reporting by Andrei Khalip; Editing by Alison Williams)

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