Portugal Not Discussing EU Aid, Can Meet Financing Needs |
| Wall Street Journal - Apr 6, 2011 |
Portugal said Wednesday that it can meet all its financing needs and hasn't asked for any aid from the European Union, but soaring funding costs increased doubts that the government could make it through June without external aid.
The finance ministry acknowledged that financing terms have deteriorated since Prime Minister Jose Socrates resigned, as demonstrated at Wednesday's auction of EUR1 billion in short-term debt, which saw yields surging.
Portuguese banks have been among the main buyers of government debt in recent months but are becoming increasingly unwilling to add to their purchases, raising the odds that the outgoing government will have to make a formal request for a bailout from the EU and the International Monetary Fund or seek some kind of short-term bridging loan until elections are held on June 5.
The growing likelihood that Portugal will soon tap these institutions for funds comes as EU finance ministers are scheduled to meet Friday for informal talks in Hungary, which currently holds the rotating EU presidency. Although not officially on the agenda, the matter may be raised in the sidelines of this meeting and at the spring meetings of the IMF and the World Bank in Washington next week.
Read Full Article from Wall Street Journal
- Posted: 2011-04-06 12:25:06
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