Cash-strapped Portugal raises $1.67 billion loan

AP News
Posted: Aug 17, 2011 6:47 AM
Cash-strapped Portugal raises $1.67 billion loan

Portugal has raised euro1.16 billion ($1.67 billion) in a short-term debt auction amid continuing market jitters over the eurozone's sovereign debt crisis.

Portugal needed a euro78 billion bailout earlier this year to help pay its heavy debts as it struggles to break out of an economic recession.

The government debt agency said Wednesday it sold euro985 million in 3-month Treasury bills at a rate of 4.854 percent, down from the 4.967 percent recorded in a comparable auction earlier this month.

It also auctioned euro172 million in 6-month bills at a rate of 4.989 percent, up from 4.960 percent last month.

Demand for the shorter-term bills was 1.8 times higher than the amount on offer and 7.2 times higher for the longer loan.