Portugal Likely To Seek Bailout By June At The Latest-Official
By Costas Paris and Patricia Kowsmann, Of DOW JONES, NEWSWIRES
ATHENS -(Dow Jones)- Portugal will likely seek a bailout from its European Union partners and the International Monetary Fund by June at the latest, a senior official at a euro-zone government said Monday.
The request for help could some within the next few weeks if opposition parties vote down a new set of measures designed to cut the budget deficit. That vote takes place Wednesday, and Prime Minister Jose Socrates has said he will quit if the new austerity package is rejected.
The governments of Greece and Ireland have already been forced to seek help from the EU and IMF when it became too expensive for them to borrow from bond, and Portugal's borrowing costs have been rising steadily in recent months.
"The majority of the euro zone is all but convinced that Portugal will follow Greece and Ireland in seeking in bailout. Many believe it will happen in April which could well be the case. My opinion is that they could stay above water until June at the latest as it very difficult for them to turn around market sentiment," the official, who is directly involved in euro-zone talks, told Newswires.
The rise in borrowing costs would be further aggravated if the government is defeated Wednesday. Opposition parties that have a majority of lawmakers in parliament have already said they will vote against them.
Portugal's two largest opposition parties, which together have over 100 representatives in Parliament from a total of 228, have already said they will vote against the measures. Socrates' party has 97 representatives.
"The government continues to think international aid won't be necessary as it continues to show it can meet its budget deficit targets for the next few years, " a Portuguese government official said.
"That said, if the opposition shuts down the new austerity measures on Wednesday, the country might have no option but to ask for help," the official said.
The government official said in that case, Socrates would still attend a meeting of leaders from the EU's 27 members on Thursday and Friday, but would make it clear he didn't gather enough support to put in place a plan that would guarantee the budget deficit will be cut as planned.
According to the euro-zone official, Portugal could also seek a bailout sooner rather than later after EU leaders decided earlier this month that the European Financial Stability Facility, the group's emergency rescue fund, could buy bonds from governments that are already receiving help because they can't tap the international bond market.
"The ruling on the EFSF is basically an invitation for Portugal to seek a bailout. Euro-zone leaders like Germany and France want Lisbon to do this sooner rather than later. So it's a matter of when rather that if and I expect that the Portugal issue will be discussed at the summit this week," the euro-zone official said.
Portugal's financing path looks increasingly difficult. It must repay EUR4.23 billion in April and EUR4.9 billion in June after three buy-back auctions that reduced the outstanding amount of these two lines by only EUR339 million.
The country has sold around EUR7 billion in bonds so far this year, out of an annual target of EUR18 billion to EUR20 billion. Sales to date include private placements for which the Portuguese government hasn't released exact data.
As a sign the country is struggling to stand on its feet alone, the European Central Bank Friday stepped in to buy Portuguese government bonds in the secondary market. According to people familiar with the situation, the ECB bought close to EUR500 million after a month without intervening.
Friday's ECB move helped lower yields on Portuguese 10-year bond yields, although they remain above 7%, a level the own government said is unsustainable in the medium term.
.... comunque sul Portogallo rischi piu' di fare il cassettista sodomizzato 
