LISBON: Portugal's international lenders have approved the country's performance under a bailout in their latest review of the economy, putting the country closer to a smooth exit from the lending programme as planned in mid-2014.
Portugal emerged out of its deepest downturn since the 1970s in the second quarter and has begun to win back investor confidence as it prepares to return to financing itself in markets next year after the three-year bailout.
"The lenders agreed that our targets were met and our objectives are within reach," Finance Minister Maria Luis Albuquerque told a news briefing.
"It was a very smooth evaluation that envisages the end of the bailout programme on the agreed date" in mid-2014, she added.
Economists say the country is likely to be able to leave behind its bailout but may need some kind of precautionary loan from creditors before standing on its own two feet.
The country carried out a bond swap this month which met with strong investor demand.
The biggest threats seen to the end of the bailout are potential decisions by the country's constitutional court that could challenge austerity measures adopted under the bailout.
But Albuquerque and Deputy Prime Minister Paulo Portas said there were no plans for alternative measures. "We see no reason to presume that there will be negative decisions from the constitutional court," Albuquerque said.
Portas said the "evaluation was positive" and Lisbon was likely to meet this year's budget deficit target of 5.5 percent of gross domestic product.
Portas also said the country would meet its fiscal targets until the end of the programme regardless of any upsets by the court. The country is expected to return to growth of 0.8 percent next year after dropping 1.8 percent this year.
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