For the first time since the bailout of 2011, Portugal sold ten year bonds. This is a clear manifestation as to the untiring efforts to restore investor confidence in the recovering economy of the country through the hard fought implementation of austerity policies.
Portugal though remains as a ward of bailout creditors, with full economic recovery still years away. It has proven successful though in raising Eur3 billion or US$3.9 billion from international markets, a clear sign that European leaders are putting the past bad experiences at the backburner.
The country was one of the countries of the Eurozone that needed to be bailed out. It has not sold off long-term debt since it required the Eur78 billion or US$102 billion to avoid bankruptcy and economic dislocation. The major international ratings services has downgraded the credit worthiness of Portugal to junk status as the country fell into the abyss of the Eurozone financial crisis.
The Portugal bond sold at a rate of 5.669% with foreign purchasers getting 86% of the bonds issued. According to Treasury Secretary Maria Luis Albuquerque, the demand was so strong that even Eur10 billion could have been sold.
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