Monday 20 November 2017

Portugal completes €2.03bn bond payments two years early

Jim Silver

Portugal said it completed payments to holders of bonds backed by unpaid tax and social security claims two years before the deadline, allowing the government to benefit from any recoveries on remaining claims.

In 2003, Portugal agreed to cede the rights to €11.4bn in claims to Citigroup in exchange for €1.76bn in cash, raised by the sale of bonds backed by payments on the overdue claims.

The final payment on the bonds was made at the end of March, the finance ministry said. Transfers reached a total of €2.03bn, it said.

There are €4.5bn in outstanding claims, and any money raised from them will remain with the state, the ministry added. (Bloomberg)

Irish Independent

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