Arab Today, arab today portugal makes early return to debt market
Last Updated : GMT 22:47:13
Arab Today, arab today
Arab Today, arab today

Portugal makes early return to debt market

Arab Today, arab today

Arab Today, arab today Portugal makes early return to debt market

Lisbon - AFP

Portugal launched on Wednesday its first medium-term debt issue since it received an international bailout in May 2011, making the critical step of returning to the borrowing markets much quicker than expected. The five-year bond issue, the first since February 2011, raised 2.5 billion euros ($3.3 billion) at a rate of 4.891 percent, treasury official Maria Luis Albuquerque said. Given investor demand for more than 12 billion euros, the country\'s debt management agency IGCP decided to increase the offer from the initial level of 2.0 billion euros. Rising borrowing costs pushed Portugal into taking a 78-billion-euro bailout in May 2011 from the European Union and International Monetary Fund. Since then it has only been able to borrow on short-term debt markets, but the EU and IMF had planned for Lisbon to begin to start financing itself on markets again in September this year when it must make its first debt payment not covered by bailout funds. \"This is an important step in our path towards reestablishing the credibility of Portugal,\" said Economy Minister Alvaro Santos Pereira. \"We have succeeded in showing the world that Portugal is different from other countries in difficulty,\" he added. In a sign of growing investor confidence, the rate of return to investors on Portugal\'s 10-year bonds fell on Tuesday below 6.0 percent on the secondary market for the first time since December 2010. The yield on Portugal\'s 10-year bonds rose to as high as 17 percent in January 2012. A 6.0 percent interest rate is seen as a key threshold above which a country in a low inflation and low growth environment will have difficulty supporting its debt. Investors could also take reassurance on Tuesday from news that Portugal had met its 2012 public deficit target of 5.0 percent of gross domestic product. Portugal was required to make sharp spending cuts and tax rises in exchange for the EU-IMF aid and to return its public finances to a sound footing. \"It is a big step in the right direction, but full market access is more than \'just\' reopening a five-year bond,\" Commerzbank analyst David Schnautz noted. \"A \'return to the markets\' is a road on which one moves gradually, but this operation evidently has great symbolic value,\" said Rui Paulo Santos, an economist at BPI bank. Among the factors which enabled Portugal to push up its return to the markets \"it must be underlined the promise of unlimited support from the European Central Bank,\" he added. The ECB unveiled last year its so-called OMT programme, which is for eurozone countries implementing a bailout or precautionary programme and borrowing on long-term debt markets. Once it has returned to the debt markets Portugal would be to ask the European Central Bank to buy its bonds under its as-yet untested OMT programme. ECB intervention would give investors confidence they could sell the bonds later if they wanted to, without major losses. Portugal also received the support Monday of eurozone finance ministers to have the repayment period of its bailout loans extended, in order to improve its finances and ease its return to debt markets. EU finance ministers could make a final decision on Portugal\'s loans by March. Greece had the repayment period on its bailout loans extended last year, following which Ireland and Portugal were promised similar treatment on their bailout loans.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today portugal makes early return to debt market Arab Today, arab today portugal makes early return to debt market

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today portugal makes early return to debt market Arab Today, arab today portugal makes early return to debt market

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Airbus CEO says won't cling to job

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 'Final phase' of battle for Raqa

GMT 03:47 2017 Monday ,16 October

'Final phase' of battle for Raqa
Arab Today, arab today Uber puts the brakes on UberPOP

GMT 14:15 2017 Tuesday ,10 October

Uber puts the brakes on UberPOP
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Norway seeks 'Tesla tax' on electric cars

GMT 08:17 2017 Friday ,13 October

Norway seeks 'Tesla tax' on electric cars
Arab Today, arab today Safaa Sultan happy for “Love School”

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”
Arab Today, arab today Conservation cutbacks put Brazil's

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:19 2017 Wednesday ,11 October

Bosy reveals behind her participation in festival

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 10:20 2017 Thursday ,12 October

Chad extends key conservation area

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:26 2017 Wednesday ,11 October

Trump Rolls Back Obamacare Provision

GMT 07:16 2017 Friday ,13 October

Lufthansa to swallow lion's share

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday