Wednesday, 3 February 2016

The international negative results of the "Socialist-Marxist-Leninist"- unelected government


Since the summer of 2014, when the adjustment program ended, 
the risk of the Portuguese debt has not been so high. 
The intense standoff with Brussels and the threat 
and fear of a reduced "rating" incresases 
 enormously the Portuguese risk.

The implicit risk of the Portuguese government debt rose on Tuesday, 
to the highest levels since the summer of 2014, 
since immediately after the financial rescue program of the troika. 
The dragging out of the negotiations with the European Commission, 
on the state budget for 2016 and the fear that the DBRS rating agency, 
will cut the Portuguese rating, 
are causing investors to ask for higher interest rates, 
to buy bonds from the  Portuguese Treasury.

With the interest rate for 10 years, 
in Portugal rising six basis points on Tuesday to 2.99%, 
the difference between the interest of Portugal and the German benchmark debt, 
jumped to 265 basis points (ie 2, 65 points). 
This is the most important indicator 
to measure the risk of the Portuguese debt, 
as it purges the absolute interest rate factors, 
such as the interest rate directory of the ECB and inflation expectations. 
As said, about the public debt market, 
it is this spread between the Portuguese and the German debt, 
that reflects the real financing conditions of the Portuguese State.

The rising to six basis points in the yields of 10 years, 
happened on a day when, in Spain, 
despite the political uncertainty that exists in the neighbouring country, 
the interest rate, rose just two basis points (to 1.59%, in the Spanish case ). 
These are not actual costs paid by the national treasuries, 
in the case of transactions made between investors with debt already issued, 
but serves as a reference indicator, 
which states will have to pay, 
if they go to the markets to seek new funding.

And why this rise of the Portuguese risk?

In an interview with the The Observer, David Schnautz, 
the Commerzbank analyst, 
said last week that "the international markets are nervous. 
Investors are right now more aware of the portuguese risks
 than of portuguese opportunities, 
which creates a very unfavourable context for Portugal. " 
The expert points the finger at "the reversing of all structual reforms 
that the new government is implementing, 
compared with the policies that were followed 
by the previous PSD/CDS coalition government, 
which gave confidence and credibility 
to investors and the rating agencies."

WHAT AN ABSOLUTE SHAME!

WITH NO PATRIOTIC SENSIBILITY;
ANTÓNIO COSTA 
ONLY REACTS TO SAVE HIS OWN SKIN!

ALL THESE MEASURES ARE TO KEEP COSTA ALIVEPOLITICALLY!!

NO MATTER THE HARM COSTA IS CAUSING TO PORTUGAL
OR TO THE PORTUGUESE!!


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