Portugal raises $1.4 bln despite debt downgrade

AP News
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Posted: Mar 16, 2011 7:39 AM
Portugal raises $1.4 bln despite debt downgrade

Debt-stressed Portugal has managed to borrow euro1 billion from financial markets despite growing fears about its credit worthiness.

Investors, however, demanded a higher return in the sale of 12-month Treasury bills Wednesday as the interest rate rose to 4.3 percent from 4 percent two weeks ago.

The auction came a day after Moody's downgraded the country's credit rating, stoking the pressure on the country's beleaguered minority government, which is battling to avoid taking a bailout like Greece and Ireland did last year.

Prime Minister Jose Socrates said late Tuesday he would quit if Parliament doesn't consent to his government's latest batch of contested austerity measures devised to reduce Portugal's high debt burden.