The European Union (EU) and the International Monetary Fund (IMF) explained that the country is to face considerable economic pressures during this time and will have to act bravely in order to survive it, Reuters reports.
According to the organisations, the financial aid will require that Portugal overhauls its labour markets, while the government needs to sell its shares in state utilities.
In a joint statement, the EU and IMF said: "This programme's success will require a truly national effort."
The announcement also made note of the initiative's need to reduce the deficit while also driving long-term growth and restabilizing the country's banking sector.
A source close to Reuters recently claimed that â¬12 billion of the handout package is to go to the country's banking industry.
By Tony Aynsley