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Portugal's Prime Minister Insists Coalition Government Will Survive

Portugal's prime minister says he has negotiated a "formula" to keep his coalition government intact after two resignations plunged it into crisis.

The political uncertainty had sent the interest rate on Portuguese 10-year bonds soaring above 8%, but on Friday the rate fell back to 6.8%.

PM Pedro Passos Coelho says his centre-right coalition partner has pledged to maintain its crucial support.

The government is struggling to fulfil tough bailout conditions.

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