Portugal started 2013 in a relatively hopeful mood. The country returned to the long-term debt market for the first time since being bailed out in 2011 with an offer that increased the size of an existing €6bn bond maturing in 2017. The additional money raised was €2.5bn, following demand that was reportedly in excess of €12bn, mainly coming from foreign investors. Even more hopeful was the cost of borrowing for the new funds, which was less than 5%.
“For us, getting back to the market was very important, not only internally but also externally,” says Álvaro Santos Pereira, Portugal’s minister of economy. “When a country is able to get back to the market this helps the financing of our banks and of our [small and medium-sized enterprises]. We are focusing our attention on the financing of the economy. We are following all the necessary steps to get back to normality and to get back to growth, so that we can create jobs and get investments.”
