Borrowing Costs Rise For Portugal Despite Deal On Bailout |
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May 4, 2011
Portugal was forced Wednesday to offer higher rates to sell short-term debt, suggesting that investors were still nervous, even after its caretaker government agreed with international creditors on a rescue plan.
Portugal was forced Wednesday to offer higher rates to sell short-term debt, suggesting that investors were still nervous, even after its caretaker government agreed with international creditors on a rescue plan.
The auction, which raised €1.1 billion, or $1.6 billion, came hours after José Sócrates, the caretaker prime minister, announced that he had agreed to terms for a loan package of €78 billion from the European Union and the International Monetary Fund.
The exact terms of the deal, outlined in a nationally televised speech late Tuesday, were expected to be officially confirmed Thursday and only after further talks between the creditors and the center-right Portuguese opposition parties Wednesday.
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