Portugal sells bonds for first time since bailout

  • Associated Press
  • May 7, 2013 - 5:35 AM

LISBON, Portugal - Portugal is selling 10-year bonds for the first time since it needed a bailout in 2011, representing a milestone in its efforts to regain investor confidence and prove its contested austerity policies are paying off.

Portugal hasn't sold its long-term debt since it needed a 78 billion euro ($102 billion) rescue two years ago. The three major international ratings agencies downgraded Portugal's credit worthiness to junk status as the debt-heavy country fell victim to the eurozone financial crisis.

Many Portuguese blame the last two years of pay cuts and tax hikes for the record jobless rate of 17.5 percent. The government forecasts a third straight year of recession in 2013.

But Foreign Minister Paulo Portas said Tuesday's bond sale was evidence the government's economic reforms are working.

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