Bailed-out Portugal's president says he won't call snap election, government to stay in power

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Portugal's president says he is keeping faith with the country's troubled coalition government and rejecting opposition parties' demands for an early election.

The government came close to collapse last week when the two coalition partners disagreed over the scale of austerity measures. The finance and foreign ministers resigned.

The dispute cast doubt on Portugal's compliance with the debt-cutting demands of a 78-billion-euro ($100 billion) bailout it received two years ago.

Other countries using the euro currency worried that Portugal's difficulties could hurt the bloc's efforts to escape its prolonged financial crisis.

President Anibal Cavaco Silva said Wednesday that a snap election would be "extremely negative" for Portugal's credibility as it tries to recoup the faith of investors and urged all parties to reach a broad agreement on policy.