UPDATE 1-Portugal finmin sees no need for bailout

* Says Lisbon doing all it can to avoid seeking outside help

* Says Europe not doing its work to stabilise euro

* Can’t confirm China buying Portugal bonds

(Updates with more details, quotes)

LISBON, JAN 11 (BestGrowthStock) – Portugal has no plans to seek a
bailout from the EU and IMF, and the government is doing
everything possible to avoid doing so, Finance Minister Fernando
Teixeira dos Santos said.

“We are seeking to avoid this possibility,” Teixeira dos
Santos told TSF radio when asked about a possible rescue.

Portugal is widely seen by economists as the country that is
most likely to follow Greece and Ireland in seeking outside help
with its finances to take it out of the firing line of the
widening euro zone debt crisis.

Late on Tuesday, a Bank of Portugal board member was quoted
as saying the country would leave behind its crisis more easily
if it sought foreign financing.

But Teixeira dos Santos said the country was capable of
continuing without a bailout, adding that the average interest
rates it is still paying on its debt are relatively low, with
only a small proportion being serviced at current higher
borrowing costs.

“We are doing our work. clearly Europe is not doing its work
to guarantee stability of the euro,” he added.

Teixeira dos Santos said he could not confirm that China had
bought bonds directly from Portugal.

But he added that he was confident that Wednesday’s auction
of up to 1.25 billion euros of five and 10-year bonds would go
well.

Prime Minister Jose Socrates and Teixeira dos Santos were
due to hold a press conference at 0930 GMT but the minister
would not say what it was about when asked.

(Reporting by Axel Bugge; Editing by John Stonestreet)