Portuguese Prime Minister Jose Socrates, who battles to win re-election, said he reached an agreement that allow Portugal to receive 78 billion euros three-year loan package.

Socrates said the plan would enable Portugal to cut budget deficit to 5.9 percent of GDP in 2011, 4.5 percent in 2012 and 3 percent in 2013, yet details of the plan have not been announced.

Portugal sees that aid plan deficit cuts may be a first step toward trimming the huge budget deficit which threatens economic growth that is already weak.