Portugal’s public debt risk sees record rise

10 September 2010

Lisbon, Portugal, 10 Sept – Portugal’s 10-year public debt risk Thursday posted a record rise by increasing 18.3 points to 315.05 basis points against German “bunds”, the benchmark unit, according to financial news agency Bloomberg.

In absolute terms, Portugal rose Thursday to seventh place in the list of countries most likely to default on sovereign bonds, in a list headed by Venezuela and Greece and in which Argentina takes third place.

Interest rates on Portugal’s 10-year bonds Thursday stood at 5.7667 percent according to Bloomberg, which means that the premium required by investors to buy Portuguese debt rather than German debt (2.2610 percent) stands at 354.5 basis points, which is an all-time high.

On Thursday, Portugal’s Finance Minister, Fernando Teixeira dos Santos, was in Macau where during a meeting organised by the Luso-Chinese Chamber of Commerce, he sought to attract businesspeople to Portugal in order to diversify its sources to fund public debt. (macauhub)