Thursday, March 24, 2011

Portugal in Chaos: To Ask For 50 to 100B Euro Bailout. Third European Country

These are the people that repeatedly denied that the country would need or ask for a bailout, just like Greece, Ireland did (and so does Spain).
Portuguese prime minister Socrates resigned last night after his budget was defeated. Portugal will soon become the thrid European country to ask for an emergency loan from the European Union and the International Monetary Fund (IMF), valued at 50 billion euros and 100 billion euros.

A senior official says: "The rescue of Portugal will be among the main topics of the EU summit today and tomorrow. I believe they will soon ask for the loan,".
"There has been an initial conversation about the value, probably somewhere between 50 billion euros and 100 billion euros, but they have not yet made the request, " he added. According to another authority in the euro zone, the loan amount should be 80 billion euros.

"Socrates will remain as caretaker prime minister. We'll see what he tells us. The European Union and the IMF have never lent money to an interim government, so if Lisbon needs the money before the elections there should be a very creative plan,"

The yield on the Portuguese two-year note jumped 18 basis points to 6.79, the highest level since the euro’s inception in 1999.

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