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 hopes to issue a third less new debt in 2011

Source: Reuters - Thu 2th Dec 2010

The sale of stakes in state assets like airports will allow Spain to issue less debt than expected next year, Economy Minister Elena Salgado said in an interview with the Financial Times published on Thursday.

The Treasury would need to issue 'only' about 30 to 31 billion euros of new debt in 2011, compared with the 45 billion euros originally envisaged, she said.

Spain said on Wednesday it would sell off stakes in airports and the state-run lottery.

"That will allow us to reduce our stock of debt" Salgado said.

Spain also said on Wednesday it would axe a jobless benefit and announced tax cuts for small businesses. These measures would promote economic growth, Salgado said.

With regards to the recent punishment of Spain's debt by markets in the days following the international bail-out of Ireland, Salgado noted Italy and Belgium as well as Spain and Portugal had been affected by market movements.

"In recent days the attacks of the markets have affected 40 percent of the euro zone in terms of gross domestic product (GDP)" she said.

"When there's a problem that affects 40 percent of euro zone GDP, it's a systemic problem, it's not a problem of one country or another."

Asked what that problem was, she replied: "A problem of governance - a common currency without a common economic policy."

The premium investors demanded to hold Spanish 10-year bonos over the German equivalent settled at around 262 basis points on Wednesday, narrowing from a euro-era record high of 307 bps hit on Tuesday.

Comment on this Story

Be the first to comment on this Story !!

Recommended Items

Related Articles

Related Blogs