Portugal's financial collapse appeared inevitable on Thursday, as markets took the government's resignation as proof the debt-heavy country will lose its year-long battle to avoid a bailout. Investors pushed the interest rate on Portugal's 10-year bonds to a euro-era record of 7.71 percent - an unsustainable financial burden that could soon force the country to ask for a rescue like Greece and Ireland did last year. Analysts estimate a bailout would amount to euro80 billion ($113.02 billion).
The Socialist government quit late Wednesday after opposition parties rejected its latest debt-reduction plan, generating new market jitters and likely shortening the time the country can hold out before asking for help.
Portugal's outgoing minister for the Cabinet, Pedro Silva Pereira, said the Socialist Party will continue to resist a rescue that would frighten away investors and could delay recovery for years. (read more)
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