Portugal’s Prime Minister, Jose Socrates, just admitted his country has asked the European Union for financial aid.
He says the decision was “inevitable.”
While it has yet to be confirmed, this is likely the beginning of a long process in which Portugal will receive a bailout via the European Financial Stability Fund. It could also be a more temporary aid package. No information on exactly how large the bailout could be.
It is unknown who will negotiate the deal, as Portugal is set to hold elections in June, and the government has technically broken up.
Preview: Portugal’s Prime Minister, Jose Socrates, is expected to speak to the nation at 3:00 PM ET.
His comments come only hours after his Finance Minister admitted Portugal would need a bailout.
Earlier today, Portugal auctioned 12-month bonds with a yield of slightly over 5.9%. It can borrow from the European Union and IMF’s bailout fund for five year at 5.7%.