Portugal Bailout

Jose Socrates, Portugal's caretaker prime minister, has stated that Portugal has followed Ireland and Greece and agreed to a $78BN bailout from the EU and the International Monetary Fund (IMF).

However, the deal will need broad cross-party support because Mr Socrates resigned last month (as a result of not being able to pass a budget) forcing a general election on 5 June.

Additionally, the interest rate on the bailout loan will not be set until mid May.

Using debt to pay off debt, is of course merely pushing back the day of reckoning.

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