Portugal needs bailout, says finance minister

Portugal’s finance minister said today that his country needs a bail-out because of its high debts and difficulty raising money on international markets.

Fernando Teixeira dos Santos said in written comments to the daily Jornal de Negocios that “I believe it is necessary to resort to the financing mechanisms available in Europe”.

Portugal would become the third financially troubled eurozone country after Greece and Ireland to accept assistance from Europe’s bail-out fund and the International Monetary Fund.

The move had long been expected as Portugal, one of the 17-nation eurozone’s smallest and weakest economies, struggled to finance its economy.