PORTUGAL’S prime minister said yesterday that should Greece default, it is possible Portugal could need a second round of aid from its European peers and the International Monetary Fund (IMF).

“If something really negative happens in Europe, particularly in Greece, it is necessary that [Portugal] is fulfilling and even surpassing all the demands made by the troika,” Prime Minister Pedro Passos Coelho said in a televised interview.

“If something happens, it is important that those able to help us can do so convinced that what happened in Greece won’t happen here,” he added.

Passos Coelho’s comments came as Greece continues to struggle to convince the European Union and the IMF that it is doing enough under its own bailout plan. Without a new 8-billion-euro (US$10.95 billion) aid tranche, Greece will run out of cash by mid-October.

Portugal is desperately trying to separate itself from Greece, and Lisbon has affirmed several times it is doing more than was required under its own bailout plan.

Portugal’s credibility, however, suffered a setback last week, when the country’s central bank said the autonomous island region of Madeira has under-reported its debt since 2004.

Budget figures between 2008 and 2010 will have to be revised upwards, but Passos Coelho said 2011 budget goals won’t be affected in the televised interview yesterday.

The prime minister said that the government will know the “real” financial situation of the island by the end of the month.

Since taking over in July, the government has unveiled sharp rises in public transport fees and a substantial increase in fuel taxes to meet deficit targets. It has also imposed a special income tax for 2011 equivalent to half of one month’s salary, and has vowed to cut public posts and reduce the number of public institutions. (SD-Agencies)