PORTUGAL Bond insurance charges spike

Portugal slid closer towards a second bailout yesterday as underwriters hiked the cost of insuring Lisbon’s bonds to new highs and insisted the insurance be paid up front. Business and consumer confidence hit record lows, battered by the lower wages and tax hikes of the nation’s austerity plan. Banks offering default insurance to holders of Portuguese debt have demanded huge up-front sums rather than allowing costs to be spread over the contract’s term. Yesterday it cost e3.95 million (R40m) to insure e10m in bonds over five years, payable now. – Reuters Source