Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Spain cuts 2011 debt issuance to 43.3 bln eur

Source: Reuters - Thu 30th Sep 2010

Spain will aim to cut its net debt issuance in 2011 to 43.3 billion euros from the 76.2 billion originally planned for 2010, according to a copy of the 2011 budget obtained by Reuters.

The document also showed an estimate for gross debt issuance, which includes maturing debt, of 192 billion euros in 2011. It also included an estimate for up to 6 billion euros in foreign currency bonds.

"It's forecast that the State's debt in circulation will have the same format as in previous years, raising slightly the amount of bonds over treasury bills" the budget document said.

Economy Minister Elena Salgado will present the full budget for 2011, the bulk of which is already known, at 0940 GMT, outlining its plans for debt issuance for next year as it attempts to assure markets its deficit cutting plans are in good shape.

Spain as expected lost its final triple-A ratings on Thursday when Moody's cut it by one notch, saying more reform work may be needed after 2011 to bring down its public deficit.

The estimates for debt issuance provide a rough guide to the year ahead, and are often revised according to financing needs. The document said that interest paid on the state's debt in 2011 will also rise to 27.4 billion euros, or 2.5 percent of GDP.

Spain has managed to create some distance between itself and other weak euro zone periphery countries such as Ireland and Portugal which are struggling to bring their public deficits under control. Yields on the key spread between Spanish 10-year debt and euro zone benchmark bunds are around their highest since July.

The budget will be open to final changes until it is due to be passed by the end of the year. Prime Minister Jose Luis Rodriguez Zapatero's minority governement secured the backing of the Basque National Party this month in return for some concessions to autonomy in the region. If no support had been found he could have faced calls for an early election.

On Friday, Salgado announced the basis of the budget in a press conference, confirming cuts of 7.9 percent across public spending and cuts of an average 16 percent to government departments. Pension freezes and cuts to civil servants' wages also figure under a budget that some suggest is not harsh enough in a weak economic environment to help make its deficit targets.

Spain's government expects the ecoomy to grow by 1.3 percent next year after contracting by 0.3 percent this year.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs