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Portugal: Brazil to help with debt?

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Portugal: Brazil to help with debt?

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Brazil is reportedly looking at ways to help Portugal through its debt crisis. President Dilma Rousseff said in a newspaper interview that could include possible limited purchases of the Portuguese government bonds.

Another option would be an early buyback of Brazilian bonds held by Portugal’s government. Brazil is a former Portuguese colony and Rousseff spoke while on an official visit to Lisbon.

Portugal’s Lusa news agency also quoted Rousseff as saying any possible purchases of Portuguese debt by Brazil would be subject to limits and guarantees imposed by law on the use of the Brazilian currency reserves.

Portuguese seems to heading towards an EU/IMF bailout after the resignation of Prime Minister Jose Socrates following the opposition in parliament’s rejection of his government’s latest austerity plan.