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Portuguese PM Coelho to use bank recapitalization fund to fund banks

June 23, 2011‐ Lisbon, Portugal

The new Portuguese Prime Minister Pedro Passos Coelho said that his country is ready with its bank recapitalization fund of $17.22 billion if needed because of the Greek debt crisis. He said that he is in touch with Banco de Portugal, the central bank of Portugal, and expressed confidence in it to bring the country's banks out of the problem.

The Prime Minister Coelho as well as the European Commission President Jose Manuel Barroso said that the politicians of Portugal are united in their commitment to make their own program a success. They said that about 85% of people are okay with the plan suggested by the International Monetary Fund (IMF) and the European Union (EU). Coelho said, "We will respond to the grave financial situation with financial stabilization, which points to sustainably balancing public accounts, cutting foreign and national debt, transcending specific objectives in conformity with the agreement signed with the European Union and the International Monetary Fund."

Experts believe that the recession period in Portugal will extend at least till the end of next year. The crisis in Greece and problems in the economy of Ireland and Portugal have been making eurozone a resilent region depsite some drastic steps towards recovery from the troubled financial situation being witnessed all over the world.

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