Monday, February 17, 2014

Portugal Tempted by Clean Bailout Exit After Rally

Portugal may be tempted to follow Ireland in exiting its bailout without asking European partners for a precautionary program after a bond rally let the nation already start to raise funds for 2015.
“The good strategy is to aim, like Ireland, for a clean bailout exit,” said Diogo Teixeira, chief executive officer of Optimize Investment Partners, a Lisbon-based firm that manages 80 million euros ($110 million) in assets including Portuguese government debt. “This implies that Portugal needs to build, like Ireland, a sufficient cushion of cash in order to avoid any short-term stress in the market.”
Portugal is trying to regain full access to debt markets with the end of its 78 billion-euro rescue program from the European Union and International Monetary Fund approaching on May 17. It has raised 6.25 billion euros selling bonds through banks so far this year as signs of economic recovery spurred a rally in higher-yielding European fixed-income assets.
Source and full story: Bloomberg, 14 February 2014

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