The Treasury will maintain its net debt issuance at 55,000 million next year

The Public Treasury will maintain its net debt issuers at 55,000 million euros next yearsame volume as this year. The Government approved this Tuesday in the Council of Ministers the organization’s new financing strategy, a roadmap that according to the head of the Economy, Carlos Body, will be “prudent and flexible” and that, once again, will give priority to medium and long-term debt, given that it plans to issue 50,000 million in bonds and obligations.

The Executive is taking advantage of the good progress of the Spanish economy – organizations and analysts assume that the GDP will grow around 2%, after raising the expected progress this year to around 2.9% – and the positive fiscal outlook – a new record of tax revenues is expected – to launch a strategy that in gross terms involves the issuance of 285,693 million euros, 4.2% more than the closing expected for this year (274,242 million euros), due to the greater amortizations that will have to be faced next year.

Of this gross amount, 176,935 million correspond to gross issuances of medium and long-term debt, 3.1% more than estimated for this year, and another 108,758 million for Treasury bills, almost 5.9% more in relation to the projected closing for this year (102,728 million euros).

Body has also stressed that the Treasury will continue betting next year on its green bond program, which already reaches 18,000 million euros in terms of stock. For the fifth consecutive year, the average life of Spanish debt remains around eight years.

“Each year we only have to refinance around 13% of our debt. If we only have to refinance 13% of our debt, this allows us to cushion the impact of the rate rise. Despite an increase in official rates by the European Central Bank of around 250 basis points, the increase in the cost of our debt has barely been a quarter of this increase in official rates,” the minister pointed out.

The ‘men in black’ will stop visiting Spain

Body has highlighted the Treasury for diversifying the investor base, ensuring that the non-resident base “is in line with the highs of the last six or seven years.” The minister explained that on Thursday, December 11, Spain will pay the next tranche corresponding to the Stability Mechanism loan to Spain for the 2012 bank rescue.

“Thanks to this payment that we will make on the 11th, we will exceed 75% of the loan repayment. It is an important element, since it means that We will stop having visits that we had twice a year of the technicians of the European Commission of the Stability Mechanism and the European Central Bank. That is to say, this payment puts an end to the visits of the men in black as a consequence of this loan,” he emphasized.