Portugal seen taking bailout by April -euro zone source

BRUSSELS | Thu Feb 17, 2011 12:43pm EST

BRUSSELS Feb 17 (Reuters) - European Union member states are increasingly concerned about Portugal's ability to fund itself in financial markets and believe Lisbon will have to seek a bailout by April, a euro zone source said on Thursday.

The EU has a rescue plan ready for Portugal, but it is dependent on Lisbon asking for the aid and making that request to both the EU and the International Monetary Fund. Portugal remains adamantly opposed to asking for assistance.

"Portugal is drowning. It's not going to be able to hold on beyond the end of March," the euro zone source said. "That's already understood to be the case in financial markets, but now it's also understood among (EU) finance ministers."

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Comments (10)
PedTeles wrote:
http://economico.sapo.pt/noticias/portugal-e-preocupacao-mas-resgate-nao-foi-discutido_111435.html

Sources from the EU denied the previous press release by reuters, there was concern shown but no talks of bailouts, according to a source to Portuguese Diario Economico. Moreover Olli Rehn said “there is no element to confirm that information, and that issue wasn’t debated in the previous meeting”

Feb 17, 2011 6:03pm EST  --  Report as abuse
JaneVendett wrote:
Either way, small (or not so small) volume laughs will be heard when speculative negative focus changes to the US, sooner or later…

Feb 17, 2011 8:05pm EST  --  Report as abuse
PedTeles wrote:
Yearly growth 2010 from EUROSTAT:

Greece -6.6%
Romania -0.5%
Spain 0.6%
Italy 1.3%
Portugal 1.4%
France 1.6%
UK 1.7%

Portugal outpaced all the other club med nations in growth in 2010!

Feb 18, 2011 12:48am EST  --  Report as abuse
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