Economic crisis

Portugal bonds cross dreaded 7% mark

Published on 10 November 2010 at 10:41


Yields on 10 year Portuguese bonds crossed the 7% threshold on 9 November, a first since the country joined the euro, writes i. Contradicting the Finance Minister’s recent statement that 7% would lead to an IMF bailout, Economy Minister Vieira da Silva assured parliament that "there is no magic number for which the intervention of international organizations will be considered", notes Diário Económico. The business daily notes that Portugal nervously returns to the markets today to sell off €750-1250 million in debt, with financial experts predicting that the European Central Bank will eventually stop buying up Portuguese debt in order to ease pressure on the crisis stricken country. "The ECB just won’t be able to help on the scale required for 2011," said one expert. "In the first half, Portugal will have to turn around €25 billion in debt. If no investors show up, the ECB wont be able to take on all this value by itself".

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