Portugal goes to debt markets as the pressure increases for a rescue plan

The Portugal is under pressure to follow the Ireland and the Greece and accept a rescue. Photo: AP

Yesterday, the country faced a split between its political leaders, who insist the country does not require an EU rescue plan and the Monetary Fund International (IMF) to deal with its budget deficit, and help members of the Portuguese Central Bank supporting financial acceptor.

Investors await the results of the sale auction this morning of €1 billion (£ billion) of Portuguese bonds 2014 and 2020, which indicates how investors will charge take the debt of the country.

Japan gave boost nations euro yesterday, saying it would buy bonds issued by financial assistance from EU funds to help restore stability in the region.

Leader of the Portugal Jose Socrates, says his Government has delivered on the promises of the EU, cutting the deficit of the budget less than 7 3pc 2010 goal.

"Portugal pas will require financial assistance for the simple reason that it is not necessary," he said yesterday.

EU leaders are working on a "comprehensive" plan to contain the spread of the soveriegn debt crisis, European Commissioner Olli Rehn has written in the Financial Times today.

"Our most urgent priority is to break the vicious circle of unsustainable debt, financial turmoil and growth sub-optimal", he said.

He also called for the European Rescue Fund of €440bn "strengthened and broadened the scope of its activity.

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