Germany and France want Portugal to have support from International Monetary Fund

10 January 2011

Berlin, Germany, 10 Jan – The government’s of Germany and France want Portugal quickly to accept international financial aid in order to prevent the debt crisis from spreading to other countries, German magazine Der Spiegel reported.

The magazine added that “experts” from the German and French governments expected Portugal to be assisted by the European Union and the International Monetary Fund (IMF) to prevent the crisis from contaminating Spain and Belgium.

The alarm was raised after the interest rate on a six-moth sovereign debt issue was placed by Portugal at a rate of 3.69 percent.

“By comparison, on the same day, Germany placed a 10-year loan at 2.87 percent,” the German publication said.

Berlin and Paris also want other Euro Zone countries to commit to doing whatever is necessary to protect the bl0c’s single currency.

Also according to Der Spiegel, the German Finance Minister, Wolfgang Schaeuble, and his French counterpart, Christine Lagarde, met Friday in Strasburg to discuss the euro.

In its turn, Spanish newspaper El Mundo ran with the headline that Portugal would ask for the IMF’s assistance by the end of the month, based on what analysts had said.

The Portuguese government denied that it was under pressure from Berlin and Paris to go to the IMF. (macauhub)