COMMISSION RAISES 4.75 BN EURO FOR PORTUGAL AND IRELAND BAILOUTS.
The European Commission has raised 4.75 billion on financial markets to aid Ireland and Portugal, which are currently under joint EU-IMF loan programmes. The ten-year bond was issued on 24 May and will pay a coupon rate of 3.5% to investors, a quarter of whom were from Asia, with 22% coming from France, 15% from Germany and 15% from the UK. Dublin and Lisbon will receive the payments on 31 May, but will be charged a penalty fee of between two and three percentage points on top of the coupon rate to access the funds. This is the third bond issue under the European Financial Stability Mechanism, which is providing a third of the funding for each of the Irish and Portuguese bailouts. The remainder will come from the IMF and the eurozone government-backed Financial Stability Facility. The two funds will raise a total of 15.3 billion for Portugal and Ireland before the summer.
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|Article Type:||Brief article|
|Date:||May 26, 2011|
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