Tags: Roubini | Portugal | Quite | Likely | Need | Funding

Roubini: Portugal ‘Quite Likely’ to Need Funding

Monday, 29 Nov 2010 08:19 AM

Portugal is “quite likely” to need emergency funds, said Nouriel Roubini, the New York University professor who predicted the global financial crisis, a day after European governments gave Ireland an 85 billion euro ($113 billion) aid package.

While Spain may be able to “muddle through” without a bailout, there may not be enough “official money” available if it does need aid, Roubini said today at a conference in Prague.

After agreeing to the Irish bailout, European finance chiefs yesterday endorsed a Franco-German compromise on post- 2013 rescues that means investors won’t automatically take losses to share the cost with taxpayers as German Chancellor Angela Merkel initially proposed.

The cost of insuring debt of Spain and Portugal soared to record high levels today, according to CMA prices for credit- default swaps. Contracts on Spain climbed 14 basis points to 336 while Portugal rose 23 basis points to 524.

Roubini in 2006 predicted that the U.S. economy was “headed toward a serious slowdown” because of the slump in the housing market, high oil prices and the delayed impact of interest-rate increases.

In October 2008, Roubini said he still saw “significant downside risks to equity markets.” The Standard & Poor’s 500 Index has gained 76 percent since dropping to a March 2009 low.

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Portugal is quite likely to need emergency funds, said Nouriel Roubini, the New York University professor who predicted the global financial crisis, a day after European governments gave Ireland an 85 billion euro ($113 billion) aid package. While Spain may be able to ...
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2010-19-29
Monday, 29 Nov 2010 08:19 AM
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