Investors: What financial instruments does the Portuguese Republic use to ensure State financing?

Concerns about the liquidity of public debt have led to the progressive concentration of financing activity in Treasury Bonds (OT) and Treasury Bills (BT). In accordance with the long-term strategy defined by IGCP, E.P.E., the main financing instrument is OT, which are medium and long-term fixed-rate debt securities (OT may be issued for up to 50 years).

To meet specific treasury needs, the Portuguese State may issue commercial paper for terms between 1 and 364 days, carry out repurchase agreements or contract other short-term loans, such as credit lines. Repurchase transactions consist of the sale of securities with a simultaneous agreement to repurchase these same securities on a pre-agreed future date, with the repurchase price being equivalent to the initial transaction price, plus a remuneration corresponding to the agreed interest rate.

In addition to the instruments already mentioned, the State may also issue Euro Medium Term-Notes (medium/long-term debt securities), take out loans from supranational and multilateral institutions (such as the European Union, the European Investment Bank or the European Development Council Bank), issue CEDIC (Special Public Debt Certificates) and CEDIM (Special Medium and Long-term Debt Certificates), which are debt instruments intended for the public sector, or issue Saving certificates and Treasury certificates, which are debt instruments intended for households.