PORTUGAL NEEDS EMERGENCY BAILOUT
April 7th, 2011Via: Washington Post:
Portugal asked for a bailout from Europe’s trillion-dollar rescue fund Wednesday, becoming the third European nation in a year to need outside financial help to overcome a crisis driven by high public debt, weak banks and slow growth.
The request to the European Commission came as Portuguese officials acknowledged that escalating borrowing costs and a political deadlock in the country had put it at risk of being unable to raise the funds it needs to keep its government operating.
No amount was specified in the notice sent by outgoing Prime Minister Jose Socrates that the country intends to tap an emergency fund established by the European Union last year to help Greece. The fund has also been used by Ireland.
European officials and outside analysts have estimated the figure to be as much as $100 billion.
