Portugal in deep economic crisis

Representatives of international financial institutions are still reviewing the conditions for a financial aid package for Portugal. Portugal is in a deep economic crisis, and it seems that only international aid can save the country from bankruptcy.

Residents of the Portuguese capital, Lisbon, are worried about the financial problems that the country is going through, while representatives of the International Monetary Fund, the European Central Bank and the European Commission are continuing discussions on how to get the country out of the financial crisis.

The details of this package are not yet known, but it seems that it will include the liberalization of the labor market, the increase of taxes and the freezing of pensions. Locals are divided on international involvement to help Portugal's economy.

The interest rate on Portugal's public debt reached 12 percent, following last weekend's announcement that the country's debt for 2010 was higher than initially believed. Portugal revised its domestic debt figure last week, raising it to 9.1 percent, rather than the 8.6 percent it had previously announced.

The revision of the debt figures was another step backwards for the Portuguese economy.

Delegations from the European Union, the European Central Bank and the International Monetary Fund began last week negotiations in Lisbon on the terms of financial assistance to avoid the financial bankruptcy of Portugal, which is a package of 80 billion euros. /Telegraph/