Bini Smaghi Says Portugal, Ireland May Need More Rescue Aid
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Former European Central Bank Executive Board member Lorenzo Bini Smaghi said officials must accept that Portugal and Ireland may need further assistance if they want to limit debt restructuring to Greece.
“It should be recognized right away that Portugal may not be able to return to the markets next year and needs an additional bailout package,” Bini Smaghi said in an article published on the Financial Times website today. “If it is unable to finance itself until 2016, it will need approximately 100 billion euros. The same could be done for Ireland, which requires an additional 80 billion euros.”