Due to the market's difficult circumstances, the cost of the new Portuguese debt increased from 2.5% to 3.4% in the beginning of 2017.
Since the beginning of this year, the public treasury has been spending more each time Portugal goes to the debt market. The IGCP (Portuguese Treasury and Debt Management Agency) quantified this Thursday the increase in the costs of this year’s issuance: the average cost of the new debt issued in 2017 increased to 3.4%, in comparison to the 2.5% rate payed by the Portuguese Treasury last year.
Portugal already obtained over a third of the long-term financing predicted for 2017. Yet, this year’s circumstances have been more difficult, to the point of lifting the cost of the new debt to its highest value since 2014, the year in which the rate was 3.6%, according to the monthly bulletin of the Agency which manages public debt. In addition, the average cost of the new issuances is already above the average cost of the debt stock, which was 3.2%, by the end of last year.
State direct debt cost
Since the beginning of 2017, the Agency which manages the Portuguese public debt has raised a total of 5.292 million euros with the sale of Government Bonds, at higher costs. During the same period, it raised 4.25 billion euros in Treasury Bills.