Portugal: Bonds For Sale!
Isabel Castelo Branco, the secretary of state for Portugal’s treasury, thinks that government bonds will likely be sold in auctions before mid-May, when Portugal’s bailout is slated to conclude. The bailout amounted to $106 billion given to Portugal via the European Union and the International Monetary Fund. In the last week alone, banks in Portugal managed to sell $4.4 billion worth of five year notes, and is hoping to fully reengage with the debt markets by the time the bailout has run its complete course.
“It’s above all a sign that we have access with some regularity,” Castelo Branco said of bond sales, according to Bloomberg. “Being able to again sell through auctions is a goal, and it means we will be in a more regular program of debt issuance,” she said. Further encouraging the sale of bonds, Branco reports that liquidity is not a concern.
“We don’t have a very fixed idea about any specific maturity. We are not under pressure because of liquidity. There is a relatively comfortable liquidity margin. That allows us to assess very carefully the opportunities we’ll have. Obviously we are interested in issuing, we are interested in resuming a regular issuance program,” said Branco.