Portugal's banks have said no to buying any more government debt, and want the government to take a loan from the IMF or EU, according to Reuters.

Faced with a domestic political crisis that will take the country to the polls on June 5, Portugal may struggle in the interim, prior to the next round of austerity cuts.

The country's banks want the government to take a short-term loan, from the IMF or EU, which would be separate from any larger bailout.

Just today, Moody's downgraded Portugal, based on its likely need of a bailout. Yields on the country's sovereign debt rose, and prices to insure that debt spiked as well.

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See Also:

• The Portuguese Debt Rout Gets Even Worse, As Deficit Forecast Is Way Worse Than Estimates
• Big Spanish Bank Merger Collapses As Everyone Fears The Worst About One Bank's Balance Sheet
• Early Irish Stress Test Details Show 3 Banks Need A Total Of $12.7 Billion

Source: http://feedproxy.google.com/~r/businessinsider/~3/orZCiQBKU14/portugal-banks-sovereign-debt-2011-4

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