BRUSSELS Feb 17 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."