Bulgaria's Finance minister Plamen Oresharski is to take part in the meeting of EU Finance minsters in Porto, Portugal October 14 – 15.

The meeting took place under the EU presidency of Portugal. EU finance ministers would discuss the economical situation, financial stability and fublic finance in the union, a Finance Ministry press statement said.

The Euro Group, consisting of all 13 countries that have introduced or are about to introduce the Euro, met October 14 before the full meeting of finance ministers and some central bankers from the European Union's 27 members, Associated press said.

The head of the Euro Group of finance ministers said on the first day of the meetings that the European Union's banking system was strong enough to ride out the global liquidity crisis sparked by the collapse of the U.S. subprime mortgage market.

Speaking before a meeting of euro-zone finance ministers, Luxembourg prime minister Jean-Claude Juncker said the subprime crisis should have only a modest impact on the EU economy, Associated Press reported.

Subprime lending is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history.
Subprime lending is risky for both lenders and borrowers because of the combination of high interest rates, poor credit history, and murky financial situations often associated with applicants for subprime lending.

The liquidity crisis was expected to take precedence in talks among EU finance ministers and central bankers meeting in Portugal.

European Union Finance ministers would back the ability of banks and financial institutions across the 27-nation bloc to deal with the credit crunch in the financial markets on their own, the Financial Times reported.

Citing a copy of the draft statement it had obtained, the business daily reported that EU Finance ministers would say: "Macroeconomic fundamentals in the EU are strong ... After several years of high profitability, our financial institutions are sound and resilient and can weather the current episode of financial volatility."

The meeting in Portugal comes after months of volatility in the financial markets over concern prompted by a wave of foreclosures in the high-risk US housing market that threatened financial stability elsewhere, the Financial Times said