News Summary: Portugal passes latest bailout test

AP News
|
Posted: Jun 04, 2012 4:39 PM
News Summary: Portugal passes latest bailout test

THE TEST: Portugal passed its fourth quarterly test by foreign inspectors, and its creditors _ the European Central Bank, European Commission and International Monetary Fund _ said it's "making good progress" on implementing its international bailout program.

THE RESULT: That means Portugal will get another installment of its (EURO)78 billion ($96 billion) rescue package.

THE REAL TEST? The impact of related austerity measures _ and of Portugal's continuing economic frailty _ have led the government to forecast slower growth and larger national debt. Portugal's third recession in four years already is draining government resources and cutting tax revenue.