Portugal has won a three-year reprieve in paying back up to €6.6 billion-worth of public debt. The welcome break comes at a crucial time in the country’s financial recovery – particularly as the next two years are considered decisive for the nation’s return to international markets. But the deal comes with a price. “Just in interest, we will have to pay more than €1.1 billion,” write financial correspondents in Correio da Manhã newspaper.
Nonetheless, analysts guarantee the new deal is a “success”, which opens the way for a speedy return to the markets. Said Filipe Silva of Banco Carregosa, “Portugal has relieved itself of paying (around) €2 billion in 2014 and another €4 billion in 2015. In all, €6.6 billion has been ‘delayed’ until 2017 and 2018”.
Meantime, the PS opposition has declared itself to be “apprehensive” over the level of interest payments involved while markets have reacted positively. Elsewhere, Moody’s has raised perspectives over the rating evolution of State debt in various banks from ‘negative’ to ‘stable’.
