Portugal's debt and treasury agency today issued €975 million in government bonds with demand exceeding supply by 2.43.
The ten-year bond sale was seen as an acid test for Portugal’s financial stability and the achievement of an average interest rate of 3.2524%, compared to 3.5752% in the last auction in April, has been heralded across Europe as a success.
The agency intended to place €500 to €750 million in the auction but as conditions were favourable and early demand high, a greater number of bonds was released. This will go towards compensating for the Treasury’s latest impasse over the receipt of the final Troika tranche of over €3 billion which is frozen until alternative cost saving measures are agreed in parliament – three key measures having recently been rejected by the Constitutional Court.
Investors seem willing to invest in Portuguese debt even with question marks over the treasury’s ability to repay the bonds in the future.
The pre-crisis interest rate for similar bonds was 3.13% so it now appears that Portugal does indeed have a good chance of being able to finance itself.
International credit rating agencies now will be looking at Portugal’s ability to reduce its overall debt level and seem to have papered over the fact that Portugal’s debt still is rising despite austerity, a growth in exports and the highest overall taxation rate ever seen.
Comments
Its a male camel .... so if you know your mother tell her. If your mother is unknown to you ask your 'eldest sister' is she for real (or around the neighbourhood?) - and talk her into a trial.
Camel is already up for it but is tax registered so we will also need a NIF number from mother / big sister.
Remember - no haggling.
You begin to realise the mountain still lying ahead of Portugal in comprehending what the EU is about when aware that 'cooling down' / The right to 'withdraw from buying' legislation exists in Portugal. But this law is entirely unknown by almost all Portuguese - including your lawyer. Experiment, ask !
Because it is diametrically opposite of the traditional 'Arabic haggle'. The Trata. A core part of which is the 'By Allah's Teeth, you ask too much. I cannot buy / sell at that price. Forget it'.
Then returning 10 minutes later to show interest again by saying 'Be grateful - you son of a *****; I'll pay you half what you ask' and then something like 'I'll also throw in one of my women' or, if really keen 'You can also have my best camel / goat'.