As expected the Portuguese government has asked for a EU Central Bank bailout after many months of denying they needed one, just like the Greek and Irish governments did.LISBON, April 7 (Reuters) - Portugal's financial sector can expect some relief after the caretaker government decided to seek financial aid after months of what many economists said was a refusal to acknowledge economic reality.
But Lisbon will have to agree to tough austerity targets to obtain a bailout, and how quickly a deal can be negotiated at the start of an election campaign is unclear.
Caretaker Prime Minister Jose Socrates announced he was asking for financing from the European Union on Wednesday, saying the risks to the economy had now become too great to go it alone as borrowing rates soared in recent weeks.
Following in the footsteps of Greece and Ireland, his request comes against a backdrop of political uncertainty after the government resigned on March 23 following parliament's rejection of an austerity plan.
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Portuguese banks will be relieved after taking the unprecedented step on Tuesday of warning that they may no longer be able to buy government debt -- a move which likely helped force the government into seeking help.....read on
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