A month ago, the portuguese Finance Minister Teixeira dos Santos said that if the interest payments surpass the threshold of 7% , Portugal would have to start thinking of resorting to international aid.
Today, the "yield" of Portuguese 10-year bond down slightly since the late morning, after hitting new highs (7 %) since Portugal adopted the euro currency.
While Ireland doesn't plan to enter primary markets the rest of this year, Portugal will auction as much as €1.25 billion bonds Wednesday. It is likely to pay record yields of nearly 7% on its 10-year bond, a level deemed unsustainable over the long term.
For Silva Lopes, former Finance Minister of Nobre da Costa Government, assistance from the European Fund and the IMF would have two advantages. First, would reduce interest payments and, secondly, would bring the fiscal adjustment measures, that "governments have not been able to do."