Tuesday, 20 March 2012

Portugal succeeds in the sale of bonds in the middle of the pressure of rescue

The Portugal is under pressure to follow the Ireland and the Greece and accept a rescue. Photo: AP

The country has managed to sell 650 m € for bonds due in 2014 and 599 million euros of bonds in 2020.


Performance or price investors Portugal load hanging on its debt, debt short term was 5 396pc higher than 4pc investors look for in a binding October sale.


However the Portugal performance closely-watched 10 year bond was slightly lower at 6 716pc today compared to 6 806pc in a November auction.


The Portugal government debt agency said demand for bonds, claiming that he could sell more than double the €1 billion - value it offered.


The yield of bonds to 10 years in the Portugal was negotiated under FP7 autour these days, a cost of borrowing that some economists consider too high for the country to support.


Portugal faces a split between its political leaders, who insist the country does not require an EU rescue plan and the Monetary Fund International (IMF) to deal with its budget deficit, and help members of the Portuguese Central Bank supporting financial acceptor.


Leader of the Portugal Jose Socrates, says his Government has delivered on the promises of the EU, cutting the deficit of the budget less than 7 3pc 2010 goal.


"Portugal pas will require financial assistance for the simple reason that it is not necessary," he said yesterday.


Japan gave boost nations euro yesterday, saying it would buy bonds issued by financial assistance from EU funds to help restore stability in the region.


EU leaders are working on a "comprehensive" plan to contain the spread of the soveriegn debt crisis, European Commissioner Olli Rehn has written in the Financial Times today.


"Our most urgent priority is to break the vicious circle of unsustainable debt, financial turmoil and growth sub-optimal", he said.


He also called for the European Rescue Fund of €440bn "strengthened and broadened the scope of its activity.


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