Brussels, 11/02/2014 (Agence Europe) - On Tuesday 11 February, Portugal borrowed €3 billion from the money markets over ten years at an interest rate approaching 5%. Demand was three times higher than the bonds on offer.
This is a step towards Portugal's exit from its international financial aid programme in May. The question now being asked is how exactly the country will proceed. Will the government decide to take out the preventative aid option available through the European stability mechanism, or will it follow Ireland's example and reject such an approach, as Ireland did at the end of December?
On Monday, Portugal's Economy Minister Antonio Pires de Lima ruled out a new aid plan: “We'll see what option interests us most. Ireland decided the road it wanted to take three or four weeks before its bailout program was due to end. Portugal needs to maintain a margin of freedom and keep its options open until we are very close to the date. We have to choose the best option at the right moment. Both options are good; a cautionary program or an exit without any form of program”, he told El Pais.
The Portuguese government expects GDP to grow by 0.8% in 2014 and for public debt to reach nearly 130% of GDP. (MB and EL/transl.fl)