Portugal's president Anibal Cavaco Silva warned that the country may be unable to return to the debt market next year as planned, amid analyst concerns that the political turmoil afflicting the country could linger for some time.
Portuguese 10-year government bond yields fell back to 6.8 percent on Friday - after surging past 8 percent on Wednesday - following assurances by the prime minister that he could stabilize the government.
Pedro Passos Coelho on Thursday said he had "found a formula" to maintain government stability, after the government's finance minister and foreign minister resigned within just 24 hours.
But the political chaos has raised concerns about the country's ability to meet the fiscal deadlines associated with its bailout, and its ability to return to the bond markets.
"The incapacity of returning to the [bond] markets in 2014 could even be a result of the troika not being ready to sign off in a positive way on the rescue package," Cavaco Silva told a press conference on Friday.
Ishaq Siddiqi, market strategist at ETX Capital, said this scenario would be a major setback for Portugal.
"It places them back at square one: unable to offload their debt," he said.
"Portugal has been a good student by keeping on track of this and was welcomed back to the debt market, but if they are not able to return, investors will view the country's progress over the past two years as somewhat pointless and undone."