Lisbon (RP), the Heavily Indebted Portugal applied for financial assistance from the European Union. The government had asked the EU Commission for help to secure the financing of the economy, last night the caretaker Prime Minister José Sócrates said on television. He will try to negotiate the best terms for his country.
Regarding the amount of assistance required Sócrates said nothing. Euro group president Jean-Claude Juncker had recently declared that he considered appropriate for 75 billion euros. For help getting the indebted States from the euro rescue, the liability of the German tax payers end up with 30 percent.
This is Portugal to Greece and Ireland, the third country able to pay its debts and no longer need billions of other countries. For a long time the Portuguese had fought for aid because it is associated with sharp-saving requirements. But yesterday was unable to raise the country often struggle for a new six-month loan of one billion euros - and shall provide a nearly six percent interest.
A bust of the country would take many German banks: But WestLB holds Portuguese government bonds for 158 million euros, the state-owned Hypo Real Estate for 300 million. This money would be by the Portuguese broke away.
