Portugal already paid double the Spanish interest – Correio da Manhã

Analysts say risk of sanctions does not preclude investors.

At a time when the spotlight is on Portugal because of the threat of sanctions, the country went to the market to finance it long term paying interest of about 3%. The premium demanded by investors lowered due to the last issue, yet the compensation required for the purchase of Portuguese public debt to ten years is more than twice the amount required to Spain.

Yesterday, the IGCP put 1155 million in Treasury Bonds at 10 and 6 years. In the longer term, Portugal is funded in 584 million with 3,093% interest, down from 3.25% paid in March last issue made for this period. In bonds to 6 years, the state has raised 571 million to 2.355%. In both periods, demand was reduced. On the same day, the Catholic University cut growth forecasts for Portugal by 4 percentage points to 0.9%.

Filipe Silva, an analyst at Banco Carregosa, says that “the rates were not surprising.” “Despite the possibility of sanctions to Portugal by the EU, none of this was reflected in the country’s financing costs.” It is certain the prices of Spanish debt to 10 years are around 1.12% (peaked with Brexit), while those of Portugal are on the threshold of 3%. In another level, Germany has financed yesterday in 4083 to ten million years, having first paid a negative interest of 0.05%.

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