Brussels, 18/04/2012 (Agence Europe) - In an article in the Financial Times on Tuesday 17 April, the Portuguese prime minister, Pedro Passos Coelho, said he was optimistic about the success of the €78 billion aid package agreed last year by the EU and the IMF, but said there were no absolute guarantees that Portugal would be able to roll over its debt unaided on the money markets from September 2013 onwards, as laid down in the aid plan. Taking a “pragmatic and realistic approach”, he referred to external circumstances outside Portugal's control which may lead eurozone member states and the IMF to extend the aid package beyond September 2013 if necessary, which they have already agreed to do. He brushed off suggestions that a second aid package would be required or a write-down of Portugal's bonds, but admitted that his government could not act or legislate in connection with events beyond its control.
EFSM raises €1.8 billion. On behalf of the EU, the European Commission borrowed €1.8bn on Tuesday for Portugal via the European Financial Stability Mechanism (EFSM) in the form of 26-year bonds. Further aid of €2.7bn will be provided by the end of May in the form of faster-maturing bonds. Tuesday's emission was the third by the EU since the start of the year. It met strong demand, assessed at €2.6bn. The EU raised €3 billion over 30 years early in January and then a further €3bn, this time for 20 years, at the end of February. The Commission described the emissions as a sign of confidence in the various measures to deal with the sovereign debt crisis in Europe. The EU will be raising €12.5bn this year in aid for Portgual and Ireland, of which it has already raised €7.8bn. (SP/transl.fl)