IMF boss: Portugal must prove itself

The head of the International Monetary Fund has said Portugal's government has to prove to its creditors that it is taking the right steps to control its economic problems.

Dominique Strauss-Kahn made his comments in a newspaper interview today.

Portugal is trying to avoid having to follow Greece and Ireland on the path to a bailout.

Justin Urquhart Stewart from Seven Investment Management in London said that if Portugal does ultimately ask for help, it could benefit Ireland's argument for an improved bailout package.

He said a bailout for Portugal would bring "greater focus on the need to really resolve the debt issue...by proper restructuring of the debts to enable all these countries that are recovering to repay debt and start reinvesting for the future".