Portugal under scrutiny as bailout pressure increases

| January 10, 2011 | 0 Comments
Portugal under scrutiny as bailout pressure increases

There is speculation that Portugal is, once again, under pressure to seek a bailout in order to prevent the euro zone debt crisis spreading further.

The country’s borrowing costs continue to surge – mimicking what happened in Greece and Ireland – just before they were forced to seek emergency aid.

However, Portugal continues to deny that it does not require an EU bailout and follow Greece and Ireland and request emergency funds.

There have been fears over recent weeks that the debt crisis in the euro zone could spread to weaker economies, such as Portugal, Spain, Italy and Belgium.

Sources say a Portuguese bailout package could total between €50 billion and €100 billion.

However, a spokesperson for the Portuguese Government has said: “This story has no foundations, it is false.”

The country’s Prime Minister, Jose Sócrates, has also reiterated that it does not need help.

However, the crucial test will come on Wednesday when the Portuguese Government looks to raise around €1.25 billion via a sale of three and nine-year bonds.

Tags: , bond sale, , deny, emergency, , , , , seek

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