Portugal's prime minister has confirmed the country has called for a bailout from the European Union. In a television statement, caretaker prime minister Jose Socrates said Portugal had requested financial aid from the European Commission.
For months Portugal has resisted increasing pressure to apply for help from the European Union (EU) and the International Monetary Fund (IMF).
Until now Lisbon has said it could manage on its own, but its borrowing costs reached unsustainable levels after the collapse of the government in March.
Earlier in the day Portugal raised more than €1bn ($877m) on the bond markets with the offering more than two and a half times oversubscribed.
But the debt-laden country was forced to pay an interest rate 8.78% on its benchmark 10 year bonds.
The move makes Portugal the third country in the eurozone to ask for help, following Greece and Ireland. (read more)
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