Fund manager claims spain's finances worse than portugal's

The Spanish economy is in even worse shape than Portugal's because of losses linked to real estate at the country's banks. That is the view of Fernando Bernad, who helps manage funds including Spain's top-performing Bestinver Bolsa, which returned 281 per cent during the past decade.

Bernad's outlook conflicts with increasing speculation that Portugal may follow Greece and Ireland in requiring a financial rescue led by the European Union.

The Portuguese Prime Minister, Jose Socrates, offered to resign on Wednesday after parliament rejected the government's deficit-cutting stability and growth program. ''We think the Portuguese economy has fewer problems than Spain's and the market is wrong in its evaluation of the relative problems of Portugal and Spain,'' Bernad said.

Source: Bloomberg