Portugal is “insolvent” and will likely need “soon” to join the emergency-loan program from the European Union and the International Monetary Fund now available to Greece and Ireland, Citigroup Inc. said.

“The market’s attention is likely to turn to Portugal’s sovereign, which at current levels of interest rates and growth rates is less dramatically but quietly insolvent, in our view,” Willem Buiter, New York-based chief economist at Citigroup, wrote in a report yesterday. “We consider it likely that it will need to access the European Financial Stability Facility soon.”

publicado por Miguel Noronha às 10:37 | partilhar