Portugal raises $2B in new debt

A broker gestures at a screen in a trading room of a Portuguese bank, Lisbon, Wednesday, Feb. 1, 2012. Portugal comfortably raised euro 1.5 billion ($1.97 billion) in a short-term debt auction despite recent market jitters about its fiscal soundness. Portugal has one of the 17-nation eurozone's feeblest economies and needed a euro 78 billion ($102.5 billion) bailout last year to stop it going to bankrupt amid a crippling debt load. (AP Photo/Francisco Seco)

- Portugal raised $1.97 billion in short-term debt auction on Wednesday.

DEBT AUCTION: Portugal comfortably raised €1.5 billion ($1.97 billion) in a short-term debt auction Wednesday. Borrowing costs were lower than they have been recently, and demand strong, the government debt agency said.

CONTEXT: Portugal has one of the 17-nation eurozone’s feeblest economies and needed a €78 billion ($102.5 billion) bailout last year to prevent it from going bankrupt.

PAIN: In return for the bailout funds, Portugal is cutting spending and raising taxes. That’s hurt the Portuguese economy. The Bank of Portugal expects the economy to shrink by 3.1 percent this year.