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Next On The IMF Bailout Wagon: Portugal, As DN Reports Country "May Be Required To Seek IMF Assistance"
Earlier, we disclosed that concerns that the IMF could be called in shortly to rescue Ireland was the reason for Irish CDS to hit new records. It now turns out that another of the PIIGS may be in need of an imminent IMF rescue, namely, Portugal whose CDS is also surging. According to Diario de Noticias, "Portugal may be required to seek assistance from the International Monetary Fund (IMF) to address the problems of external financing." At least Tim Giethner's little Scam Test diversion bought Europe a quiet summer, full of vacations that would not be bothered with a stark reminder of just how ugly things are about to turn.
From DN (google translated):
Former finance ministers say that foreign intervention will be needed to cover issues of public debt
Portugal may be required to seek assistance from the International
Monetary Fund (IMF) to address the problems of external financing. The conviction is three former finance ministers, heard by the DN, they
say that rising interest rates and falling demand in the issuance of
treasury bills (see box) will lead "sooner or later" to a situation
where the State can not put in the debt markets. Eduardo Catroga, Career and
Miguel Medina Beauty consider the fact that the latest issue of treasury
bills have registered an average rate higher than ever is a "signal"
the possibility of it becoming a very real scenario for the country
For Medina Carreira, what is happening in terms of public debt "is a tragedy." "This appeal to runaway foreign debt will
make the deadline, there is a constraint to financing markets. Investors
will simply cease to lend us money," warned the former finance
minister, stressing that "when this happens, we have no alternative but
to resort to the IMF to stem the problem. "
Eduardo Catroga has similar view,
for whom the current funding model of the state, using successive issues
of public debts, "unsustainable." The DN, the economist
said that "sooner or later the IMF or the EFSF [European Financial
Stability Fund] will eventually come to Portugal to bring order to the
situation," emphasizing that "the country can not live permanently in
debt" .
Referring to the increase of 14.2 billion
euros in net debt Portuguese public between January and August (a value
very close to the limit of 17.4 billion tax by the State Budget),
Catroga stressed that "this is a reflection than has been the
uncontrolled public accounts in recent years. " The former minister argues that the IMF intervention in
Portugal will be unavoidable "if the state does not adapt quickly to
normal revenue expenditure."
According to Miguel Beleza, assistance from the IMF or the EFSF is, as
yet, "an unlikely scenario but that could become a reality if the
external debt problems worsen." "It boils down everything to convince the creditors
that we are a good debt and we're not being successful in this plan,"
said the former Finance Minister Cavaco Silva, noting that rising
interest rates and declining demand in emissions public debt "is a
worrying sign."
Contacted
by the DN, the Finance Ministry rejected the idea that Portugal has a
problem of funding and ensured that the limit of debt issuance for 2010
was "not and will not be exceeded."
The office of Teixeira dos Santos ordered the
alarmism generated around the issue and accused the PSD of having
responsibilities in the increase in interest in debt issues.
"The permanent threat of
the opposition and hesitation about the viability of the next budget
have serious detrimental effects on the perception of foreign investors
on the financial situation of the country and also on the increase in
the cost of public debt," said the Finance Ministry, in a note sent to
the DN.
On that note,
the office of Teixeira dos Santos has also highlighted that "the
implementation of the emission of public debt follows as planned,
focusing on emissions from medium and long term (which are already made
about 90% ), which demonstrates the confidence of investors in the
Portuguese debt. "
»
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Portugal has the ugliest women I have ever seen.Moustaches ahoy!
Let them burn.
Seems a +100 DOW day is certainly called for!
They're at least fighting tooth and nail to keep things green. Could be a token 'down' day today.
So, can it rain dominoes?
I believe the Japanese call that Black Rain....
Interesting twist on my twist.
Interesting times...
I heard that it rains oil around the Mexico Gulf.
Cnbs will need another news flash to discredit this too.
Or let's just have another fake small bond auction to show the world all is fine.
Would that be an auction of James Bond dolls?
I apologize. I better go to work and leave the Internetz alone.
What's the big deal? Most people can't even find Port Ugal on a map.
IMF = TBTF insurance. Premium paid by taxpayers.
gonna need a bigger bank then cause it sure sounds like Metallica is starting to warm up.
Ooooh! Consumer sentiment 66.6. Just like S&P low 666. If you listen to the numerology/Bilderberg/etc. nuts on the Web, this is the sign to sell the hell out of everything.
Nonsense? Certainly. But rather enteraining nonsense.
I have a birthmark shaped like that just above my hairline. Weird!
I think even the average Joe is beginning to realize that these bailouts are not about bailing out the debtor. Seems like there is a revulsion to these in our future.
especially once you consider that your so called bailouts may have in fact been bail ins. think about that one 'cause needless to say "i don't recall a proper introduction to club membership."
how can a private investor bet against countries like portugal?
what about denmark? lots of personal debt there too, irresonsible lending to buy homes going on.
the ships haven't been comin' into Portugal since King Phillip II. That was a while ago in case you're wonderin'.
<S>The world simply need a 'fake' bank with fake 'reserves' that uses fake money which has a lock in the scheme of delivering 'money' to bail out nations/cities/companies/etc.
Oh, wait, that is the Federal Reserve's job. bravo, job well done!</S>
It's like its a giant game of Monopoly, where the Fed is the player, the banker and just bought up every property on the board. Unluckily for them, they are playing with themselves now. Everyone else moved on to the new game of reality.
you're right, masturbating is about all they're doing now. They're not producing anything.
r u saying "G ld"?
And the US market will rally in celebration of the bad news.
666 the number of the beast!!!!!!!!
"the monkey chased the weasel"
Its funny how the Pigs are going to banckrupt the IMF/dollar/Fed with all of these bailouts and when that happens the Euro will become the worlds reserve currency.
Irish Finance ministry denies needing external assistance
Yesterday the Greeks denied needing any assistance
Lehman and Bear Sterns denied....
assistance. sorry...just rolls off the.....
tongue. I know just what you......
The lesson it seems is to totally destroy your economy by borrowing more than you can afford and then be continually bailed out.So you continually reward bad economies,very clever.So as debts and deficits don,t go down,stockmarkets go up and soon inlation and hyperinflation will go up as well.
i thought that was how an economy was created not destroyed. oh, that's right...it's goldenballs. sorry to have bothered you.
RETURN OF THE PIIGS
http://williambanzai7.blogspot.com/2010/09/return-ofthe-piigs.html
I found lots of interesting information here. I love zerohedge.
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