Focus this morning has been on the success of the latest Portuguese debt auction, which was oversubscribed and raised €1.2 billion.
But it may only be a sidenote to the real story of the Portuguese bailout to come as early as next week.
Central Bank administrator Teodora Cardoso said, “It would be easier if we had external support because the adjustment would be less abrupt: if we leave it to the markets it may be brutal,” according to Ambrose Evans-Pritchard.
That’s pretty much admission that the IMF would be better now for Portugal than to continue to deal with the markets.
There are now reports that the country is already talking to the IMF, and will have a bailout sorted by next week.
And while, according Evans-Pritchard, there is still dissent on the Central Bank’s board to this bailout, it now seems as innevitable as did the Irish bailout in early December.