Monday, March 28, 2011

Deutsche Bank Economist: Portugal May Need IMF to Meet Bond Payments

 Deutsche Bank's Chief Economist Charles Mayer Tells Bloomberg that given the recent election results in Germany, where German Chancellor Angela Merkel's party was trounced, it will be difficult for Germany to approve another debt bailout. Mayer says it may come down to an IMF "bridge loan" for  Portugal to make its bond payments.

A bridge loan from the IMF, of course, doesn't eliminate a contribution from Germany. It just makes the connection murkier and brings the U.S. into the bailout picture.

No comments:

Post a Comment