UK 'very unlikely' to suffer from Portugal bailout

The UK is "very unlikely" to suffer any financial loss as a result of moves to bail out the Portuguese economy, George Osborne has said.

The chancellor acknowledged the UK would have to contribute to EU and IMF rescue funds should Portugal request external help to pay its debts.

But he said Portugal must default for the UK to be financially affected, a scenario which was "extreme".

Mr Osborne stressed that the UK would not be giving a loan to Portugal as it did to Ireland.