Battle to pay for PIIGS bailout grows

While yesterday’s interest rate rise was blamed on inflation, the cost of the bailouts of Portugal, Ireland, Greece and possibly Spain could lead to further rate hikes, writes Tom O’Connor

THE request by Portugal on Wednesday for an EU-backed financial bailout has been on the cards for some time.

It was spurred by the steep jump in interest on government bonds from 4.3% to 5.9% on 12-month paper. This bailout follows the one of €67.5 billion for Ireland last November and a €110bn bailout for Greece last May.