Portugal sells bonds a favorable interest rate


Portugal sold treasury bills amounted to a target value of 2.5 billion euros (3.2 billion dollars) at an interest rate yesterday, despite a favorable credit rating downgrade of the country recently by the agency Standard & Poor’s U.S.. The agency said the government’s debt:

«The return on bond for 11 months was 4.9%, down from 5.9% in April». The decline in return on the bond for 6 months slightly, while under the constant yield on the bonds for 3 months.

The «Standard & Poor’s» cut last week by the Portuguese debt rating two notches to a high level of risk. The agency cut the long-term credit rating of eight other European countries. The Portuguese Prime Minister Pedro Passos Coelho: «The rating downgrades Portugal had a« political nature », including making« serious ». Passos Coelho said last Monday:

«The agency based its assessment of Portugal on the current situation in Europe without taking into account that the Lisbon fulfilled the five criteria that should get based on the classification of the highest». And adopt the conservative government in Lisbon on the strict austerity policies in an attempt to reduce the budget deficit, which reached 9.8% in 2010. These efforts are carried out against the rescue package of 78 billion euros from the European Union and International Monetary Fund.