Summary Box: Debt crisis threatens Portugal

AP News
Posted: Feb 02, 2012 2:03 PM
Summary Box: Debt crisis threatens Portugal

DEBT DELUGE: Portugal's debt-crippled economy is choking amid grinding austerity measures, a steep recession, an acute shortage of cash and unemployment at a record 13.6 percent.

DOWNGRADES DONE: The three major international ratings agencies have downgraded Portugal's credit worthiness to junk status, and interest rates on the country's bonds have recently climbed to highs not seen since the European single currency, the euro, was introduced.

DOUBLE DIP: Portugal went into a double-dip recession last year, and the Bank of Portugal forecasts a 3.1 percent contraction this year, though some analysts almost double that.