Contagion threat to Portugal, Italy grows

The Bank of Portugal has warned of the "unsustainable" borrowing on the part of domestic financial institutions, who will have difficulty turning over their debt if the government's efforts to impose austerity measures founder.

A report from the central bank on Tuesday (30 November) said that while Portuguese banks face "no intrinsic profitability or solvency problems" as a result of the ongoing European sovereign debt crisis, they have been unable to access international capital market...