Emergency bridge loans in play as Portugal stares into the abyss

25 Mar 2011

Already consigned to an international bail-out after the government collapsed on Wednesday, Portugal now faces the further humiliation of having to seek bridge financing to tide it over until rescue funds eventually arrive, analysts warned on Thursday night.

With its OTs trading above 8%, the Iberian sovereign’s access to debt markets is evaporating — just as it prepares for Eu6bn of redemptions next month and a further Eu5.4bn in June.

The lack of a new government, which could drag on for two months until elections are ...

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