Portugal misses deficit target

By @ibtimes on

Budget deficit reported by Portugal's government reached 8.6 percent of GDP in 2010, surpassing the target of 7.3 percent, causing further speculation that the country will acquire a bailout from the EU and IMF.

Risk of bailout increased while borrowing costs increased after the government revised 2009 deficit of 10.0 percent to 9.3 percent. Bond yields rose to a record in the country.

Portugal's Prime Minister said that The government is not in conditions and does not have the powers to request any type of external aid, adding that the government will guarantee that there is the necessary financing for the country to face its responsibilities and honor its commitments.

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