Por­tuguese debt.

Kathimerini English - - Business & Finance -

The cost of in­sur­ing Por­tuguese gov­ern­ment debt soared to a record on concern there will be no out­right win­ner de­clared af­ter elec­tions next month, com­pli­cat­ing the coun- try’s ef­forts to cut its bud­get deficit. Credit de­fault swaps on Por­tu­gal jumped 16 ba­sis points to 682, ac­cord­ing to CMA in Lon­don. Swaps on Greece dropped 36 ba­sis points from an all-time high to 1,438. The So­cial­ist Party of Por­tuguese Prime Min­is­ter Jose Socrates and the op­po­si­tion So­cial Democrats are tied in a sur­vey of vot­ers’ in­ten­tions for par­lia­men­tary elec­tions on June 5, Diario de Noti­cias re­ported. In­vestors are spec­u­lat­ing Greece won’t be al­lowed to re­struc­ture its debt un­til af­ter the start of the Euro­pean Sta­bil­ity Mech­a­nism in 2013. “Peo­ple feel Por­tu­gal has quite a chal­leng­ing task any­way and there is a pos­si­bil­ity you might end up with no clear win­ner af­ter the elec­tion,” said Anke Richter, a strate­gist at Mizuho In­ter­na­tional Plc in Lon­don. “Ev­ery nation has a dif­fer­ent prob­lem: Greece can’t col­lect taxes, Ire­land has its banks. Por­tu­gal’s econ­omy needs to be more open and dy­namic, and that’s not eas­ily achiev­able.”

(Bloomberg)

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