error when printing error messages with utf8 chars (LANG=pt_PT.utf8)

Binary package hint: bzr

bzr is unable to print the translated error messages containing utf8 encoded chars:

bzr: ERROR: Unprintable exception LockContention: dict={'msg': IOError(11, 'Recurso indispon\xc3\xadvel temporariamente'), 'lock': u'/home/janito/workspace/debfactory/.bzr/checkout/dirstate'}, fmt='Could not acquire lock "%(lock)s": %(msg)s', error=UnicodeDecodeError('ascii', '[Errno 11] Recurso indispon\xc3\xadvel temporariamente', 27, 28, 'ordinal not in range(128)')

ProblemType: Bug
DistroRelease: Ubuntu 10.04
Package: bzr 2.1.1-1
ProcVersionSignature: Ubuntu 2.6.32-21.32-generic 2.6.32.11+drm33.2
Uname: Linux 2.6.32-21-generic x86_64
NonfreeKernelModules: fglrx
Architecture: amd64
Date: Tue Apr 20 23:47:27 2010
InstallationMedia: Ubuntu 9.10 "Karmic Koala" - Release amd64 (20091027)
ProcEnviron:
 LANGUAGE=pt:pt_BR:en
 PATH=(custom, user)
 LANG=pt_PT.utf8
 SHELL=/bin/bash
SourcePackage: bzr