Portugal’s borrowing costs rise

| February 10, 2011 | 0 Comments
Portugal’s borrowing costs rise

Speculation is mounting again that Portugal may need financial assistance after a sharp rise in bond yields.

In early trading, yields on Portuguese 10-year bonds climbed to almost 7.6%, their highest since the euro was introduced more than a decade ago.

The country’s borrowing costs have risen in recent months – mimicking what happened in Greece and Ireland – just before they were forced to seek emergency aid.

However, Portugal continues to deny that it does not require an EU bailout and follow Greece and Ireland and request emergency funds.

There have been fears over recent months that the debt crisis in the euro zone could spread to weaker economies, such as Portugal, Spain, Italy and Belgium.

However, Portugal continues to refute claims that it needs emergency funding.

Last month, Portugal raised €1.25 billion on the bond markets via a sale of three and nine-year bonds.

Today, Cabinet Minister Pedro Silva Pereira, said: “There are no reasons to think that Portugal does not have conditions to keep tapping the markets.”

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