Portugal has raised (EURO)2.5 billion ($3.3 billion) in a debt auction that featured solid demand and lower interest rates, easing the country's financial worries.

Portugal needed a (EURO)78 billion bailout in May 2011 when investors spooked by its high debt load and low growth turned their back on the country. Since then the government has won international praise for enacting cuts and reforms.

The Public Debt Agency said it sold (EURO)1 billion in 18-month Treasury bills Wednesday at a rate of 1.963 percent, down from 2.990 percent last November. A sale of 12-month bills raised (EURO)1.2 billion at 1.609 percent, down from 2.101 percent.

The auction raised (EURO)300 million in 3-month bills at 0.667 percent, compared with 1.936 in November.

Demand was more than double the amount offered.