CORRECTED-Portugal sees no problem redeeming 5 bln euro debt

(Corrects third paragraph to show the Portugal redemption
comes one day after not before the Greek redemption)

By Sergio Goncalves

LISBON, April 27 (BestGrowthStock) – Portugal will have no
difficulties in redeeming 5 billion euros of treasury bonds that
mature in May, Treasury Secretary Carlos Pina said after S&P cut
the country’s sovereign credit rating by two notches to A- on
Tuesday.

“We can guarantee that the redemption will be done without
difficulties,” Pina said in a written interview with Reuters.

Portugal must redeem 5 billion euros of bonds on May 20, one
day after Greece must refinance 8.5 billion euros in bonds.

Portugal still needs to issue between 11 billion euros and
13 billion euros in bonds this year, having issued 9 billion
euros since the start of 2010.

“The financing programme for 2010 has been executed with
normality and it will continue in the future, with the necessary
adjustments due to the evolution of market conditions,” he said.

Pina added that the spike in the premium investors demand
for holding Portuguese bonds over equivalent German bunds to a
euro life time high of 308 basis points on Tuesday shows “that
there is obviously a contagion effect” from Greece.

“From the side of the Portuguese government, we will adopt
all the necessary measures that can guarantee confidence in our
public debt,” Pina said.

He added that credibility had been put into question by
several international institutions “without the support of
economic and financial fundamentals in their evaluations.”

He said the determination of the Portuguese government in
reducing the deficit to below 3 percent by 2013 from 9.4 percent
last year will contribute to markets differentiating Portugal’s
situation from those of other countries.

“We are, however, increasingly convinced that more than a
drive by market operators directed at Portugal, this is an
action against the euro zone and for which urgent solutions must
be adopted,” Pina said.

Stock Market Money

(Writing by Srikesh Laxmidas; editing by Axel Bugge)

CORRECTED-Portugal sees no problem redeeming 5 bln euro debt