Portugal searches Bail-Out from the EU

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6 April 2011 last updated at 21: 28 GMT José Socrates: "we have achieved in the moment where is it to much risk" Portugal's caretaker Prime Minister José Sócrates said that he has called for financial assistance from the European Union.

Socrates said that the country "on too much risk" was, it should be exposed to that is not.

The Government has long resisted for help ask but last week admitted to that it 2010 budget deficit target had missed his.

Portugal follows Greece and the Irish Republic in the search for a Bail-Out.

Mr Socrates said "I said always questions, would be the last way to go for foreign aid, but we have achieved at the moment,".

"Above all it is in the national interest."

President who Commission said José Manuel Barroso would be processing the request in a statement of Portugal "in the fastest manner in accordance with the rules in force".

He reiterated his "trust in Portugal the capacity, the current difficulties, to overcome with the solidarity of their partner".

Borrowing costs

Socrates not said how much help would be Portugal. Negotiations now are Robert Peston in progress and the BBC business editor rescue said as zurückgeschnitten euros ($115bn, £ 70bn) could make loans.

Socrates was speaking after Finance Minister Fernando Teixeira dos Santos said it was necessary for financial help from the EU.

Continue reading the main story of Matthew Preis Europe correspondent, BBC News

First Greece and Ireland, now Portugal. But unlike the previous two Bail-Outs, this one seems not to panic - either in the corridors, which makes here, nor have the markets provoked.

The EU top economic official Olli Rehn called the Portuguese decision a "responsible move". The President of the European Commission José Manuel Barroso - is Portuguese - said that the request can be processed as quickly as possible.

A team could be sent in the coming days after Portugal.

EU finance ministers hold a planned meeting in Hungary at the end of the week. Portugal will be high on the agenda.

The European Commission and the European Central Bank will both share the Bail-Out financing. The International Monetary Fund says it is ready, also help.

Earlier, the Government raised over EUR 1 billion to creditor pick a higher interest rate numbers on the financial markets to repay loans, but.

Portugal's costs for borrowing has risen so sharply, because the minority joined Socialist Government last month after his proposed more stringent cost-cutting measures in Parliament defeated.

Since then, several agencies of the country have downgraded debt.

An informal meeting of European Finance Ministers had already planned in Budapest for Thursday were. Portugal was not originally on the agenda but should be discussed.

The UK Treasury Minister Mark Hoban will take part. A source at the Treasury said that the bilateral loan UK the Irish Republic was offered "very much a special case" and is a similar offer "not on the table" for Portugal.

Jan Randolph, head of the country risk at IHS global insight, told the BBC, that Portugal could organize "a kind of bridging loan" in the short term.

But he added: "the real big loans over several years need a medium-term plan and I don't think that can be agreed until the new Government in place."

Elections are expected to take place in a few months.