Portugal bail-out goes ahead while Strauss-Khan is refused bail!

As the IMF managing director was remanded in custody in New York on charges of attempted rape and declared a flight risk, his colleagues were striking a deal for the eurozone's third rescue package.

 The ministers – along with the 10 EU finance ministers from outside the single currency, including chancellor George Osborne – agreed on a €78bn bailout for Portugal. They also signed off on the permanent eurozone bailout fund, the European stability mechanism, which is to shore up the currency from 2013.

IMF chief Dominique Strauss-Kahn's arrest may prolong ongoing debt crisis

Mr Strauss-Kahn, 62, was taken off an Air France plane at JFK airport just minutes before it left for Paris.
Police say he faces three charges, including attempted rape. His lawyers say he denies the claims.

Markets are expected to react negatively on Monday to the news of Mr Strauss-Kahn's detention in New York.

The former French finance minister had been a key ally for the European Union as Greece, Ireland and Portugal all sought billion pound bail-outs to pay their debts.

Strauss-Kahn had been due to attend a crucial meeting of eurozone finance ministers in Brussels on Monday, to talk about the final details of a €78bn (£69bn) IMF-backed bail-out for Portugal and discuss further funding for Greece.