The Treasury cuts the debt issue by another 5,000 million euros

The treasure cut into others 5,000 million euros the emision of public debt planned for this year, up to a total of 110,000 million. This was announced by the economic vice president, Nadia Calvin, in a congress organized by the APD. The head of Economy has justified the suspension of the auction of bonds and obligations scheduled for next December 17 due to the “budget management” and a better evolution of tax collection compared to forecasts.

The Treasury has revised its debt issuance forecasts three times in recent months and downward three times. In May, the expected figure for issuing new debt to end the year was 130,000 million euros, incorporating in this forecast the contingencies caused by the pandemic. The forecasts of the autonomous communities to repay some 10,000 million of debt with the State due to the low interests that are currently in the market (due to the low interest rate policy imposed by the ECB) caused that in October the forecast will be cut again up to 115,000 million.

And finally, except for further revisions, the issuance of public debt this 2020 will close at a total of 110,000 million euros. The same figure for the issuance of new debt that the Government estimates for the next financial year 2021, according to the General State Budget Project that is in parliamentary process. In this sense, Calviño insisted on Tuesday that said schedule of public debt issuances will be matched to the arrival by tranches of the 142,000 million of European funds.


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