After refusing for months to solve it, Portugal was formally appealed Wednesday, April 6, the European funding mechanism to help the country out of the financial turmoil created by its public debt. The government "decided today to send a request for financial assistance to the European Commission, said in the evening the prime minister resigned, Jose Socrates during a televised speech.
This request for assistance was soon confirmed by Brussels: "The president of the European Commission, [Barroso], provided that this request would be examined as soon as possible (...) and expressed confidence in Portugal's capacity to overcome its current difficulties with the solidarity of its partners, "stated the Commission in a statement.
In the aftermath, the International Monetary Fund also said to stand ready to provide assistance in Portugal "in case of need, without having received any formal request for loan. Earlier, the Portuguese Minister of Finance, Fernando Teixeira dos Santos, explained in an interview published on the website of Jornal de Negociosqu "it is necessary to use available funding mechanisms in the European (...) in this difficult situation, which could have been avoided.
" "The country has been pushed irresponsibly towards a difficult situation on financial markets," said Mr Teixeira dos Santos, referring to the rejection by parliament of the new austerity program of the socialist government. The situation culminated in the March 23 resignation of Prime Minister Jose Socrates, charged by President Anibal Cavaco Silva caretaker before leaving.
Resorting to the aid of the EU "will require, also, participation and commitment of major political forces and institutions", also said the Finance Minister. Until then, the government had resigned without recourse to outside help, repeatedly saying that the Portuguese state was "able to ensure its financial commitments." Since the resignation of Jose Socrates, Portugal is subjected to increasing pressure from financial markets, which worried about its solvency, demanding historically high interest rates to refinance.
Tuesday, ratings agency Moody's lowered the rating one notch from Portugal, "A3" to "Baa1," highlighting "the increased political uncertainty, fiscal and economic, and another agency, Fitch, lowered by two notches or more notes of six Portuguese banks. The country must pay 4.252 billion euros on April 15 and 4.899 billion on June 15 Brussels was prepared to help the country, but only as part of a fiscal adjustment program.
Portugal has set a new issue of short-term debt to raise $ 750 million to one billion euros in Treasury bills. 
This request for assistance was soon confirmed by Brussels: "The president of the European Commission, [Barroso], provided that this request would be examined as soon as possible (...) and expressed confidence in Portugal's capacity to overcome its current difficulties with the solidarity of its partners, "stated the Commission in a statement.
In the aftermath, the International Monetary Fund also said to stand ready to provide assistance in Portugal "in case of need, without having received any formal request for loan. Earlier, the Portuguese Minister of Finance, Fernando Teixeira dos Santos, explained in an interview published on the website of Jornal de Negociosqu "it is necessary to use available funding mechanisms in the European (...) in this difficult situation, which could have been avoided.
" "The country has been pushed irresponsibly towards a difficult situation on financial markets," said Mr Teixeira dos Santos, referring to the rejection by parliament of the new austerity program of the socialist government. The situation culminated in the March 23 resignation of Prime Minister Jose Socrates, charged by President Anibal Cavaco Silva caretaker before leaving.
Resorting to the aid of the EU "will require, also, participation and commitment of major political forces and institutions", also said the Finance Minister. Until then, the government had resigned without recourse to outside help, repeatedly saying that the Portuguese state was "able to ensure its financial commitments." Since the resignation of Jose Socrates, Portugal is subjected to increasing pressure from financial markets, which worried about its solvency, demanding historically high interest rates to refinance.
Tuesday, ratings agency Moody's lowered the rating one notch from Portugal, "A3" to "Baa1," highlighting "the increased political uncertainty, fiscal and economic, and another agency, Fitch, lowered by two notches or more notes of six Portuguese banks. The country must pay 4.252 billion euros on April 15 and 4.899 billion on June 15 Brussels was prepared to help the country, but only as part of a fiscal adjustment program.
Portugal has set a new issue of short-term debt to raise $ 750 million to one billion euros in Treasury bills.
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