Next week, Portugal will once again issue short-term debt

  • ECO News
  • 13 April 2017

The Portuguese Treasury and Debt Management Agency wants to raise up to 1,250 million euros in 3-month and 11-month's Treasury bills. It will do so only two days after DBRS rates the Portuguese debt.

Portugal is back in debt markets next week. The Portuguese Treasury aims to achieve between 1,000 and 1,250 million euros in 3-month and 11-month’s Treasury bills next Wednesday, April 19. It will do so only two days after the agency DBRS updates the Portuguese debt rating.

It will be the fourth short-term financing operation performed this year by the agency headed by Cristina Casalinho. In January, February, and March’s issuances, the Portuguese Treasury and Debt Management Agency (IGCP) was able to raise 4,250 million euros.

This Wednesday, the Portuguese Republic financed itself with 1,250 million euros in five and eight-year government bonds, in a double auction which signals an inversion in the worsening tendency in the financing costs Portugal saw since the beginning of the year; Interest rates were lower than in previous comparable auctions.

Next Friday, DBRS will update Portugal’s debt rating. The Canadian Agency places Portugal’s debt rating at BBB (low), keeping the country eligible for the European Central Bank’s public sector’s debt purchase program, which has been a major help in the past year concerning its risk in the secondary mark. Analysts are not expecting any changes from DBRS.

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