Portugal borrowing costs shoot up
Portugal's borrowing costs shot up yesterday after the country named Maria Luis de Albuquerque as its new finance minister.
The Portuguese government said it remains committed to public deficit goals agreed with its EU/IMF bailout lenders, despite the resignation of Vitor Gaspar as finance minister.
The spokesman said any renegotiation of the goals, which the government had acknowledged could be required if the economy continues to underperform expectations, would be done only if necessary and if European partners agreed to such talks.
The yield or interest rate on Portugal's 10-year government bonds rose by around a third of 1pc to 6.7pc yesterday, however. It is close to the 7pc level that many in the markets regard as dangerously high.