Tomorrow the Public Treasury will announce a reduction in the issuance of debt foreseen in the General State Budgets for 2021, as advanced by the Third Vice President of the Government and Minister of Economic Affairs and for Digital Transformation, Nadia Calvio .
In an interview in Cope, Calvià ± o explained that, thanks to the fact that the 2020 tax revenue forecasts “have been exceeded” by the collection, “tomorrow the Public Treasury will do the announcement and forecast of debt issuance for this year and it is going to give that good news, that we are going to reduce the issuance of debt with respect to what was planned when the Budget project was presented, “he assured.
According to the projections of the 2021 General State Budget law, the gross issuance by the Public Treasury would mark a record figure of 299,138 million euros in the new year, 6% more than the previous year , with a net debt forecast for 2021 of around 110,000 million euros.
It will be Carlos San Basilio, Secretary General of the Treasury, who details this decrease in debt issuance contemplated for 2021, beyond this first note from the vice president. In 2019, the issuance of these public commitments stood at around 20,000 million euros, a “very low” figure in the words of the secretary general himself. The forecast for net debt issuance was raised for 2020 to € 32.5 billion, but that amount eventually shot up to € 130 billion in light of the pandemic; However, the reception of the European SURE fund and a better-than-expected collection at that time also contributed to the net debt finally closing at around 115,000 million euros.
By 2021, the Government had estimated at 110,000 million of net issuance of debt, about 10,000 million in concept of Treasury bills and a bulk of 100,000 million in bonds and obligations. The higher collection reported by Calvià ± o, among other factors, will allow the aforementioned 110,000 million net (exactly 109,922 million), practically 300,000 million euros in gross terms (299,138 million euros). In the past year, the average cost of financing fell to an all-time low of 1.86%, also raising the average maturity term of the debt above 7.7 years.
While waiting for the breakdown of the new amounts, this Thursday the Public Treasury has already held its first auction in 2021, in which it has placed 6,025 million euros in this issuance of government bonds and obligations. The auction was again encouraged by the historically negative interest rates that are currently fueling international markets, marginal rates that have been around -0.4% for the Spanish issue this Thursday.
“The rebound continued in the fourth quarter”
In addition, the economic vice president has ensured that the Ministry of Finance has already shared with the autonomous communities the criteria that will be used for the distribution of European funds, and that these would be the ones “used by the European Commission”, that is, figures such as unemployed people, youth unemployment or a drop in GDP, reports Europa Press.
Interviewed in Herrera in Cope, Calvià ± o highlighted that the Spanish economy has shown “positive dynamism” in the fourth quarter in the same way as in the third. “Our forecast is that the dynamism and rebound in the third quarter remained in the fourth and will continue to accelerate in 2021,” said the vice president, who guarantees, by vaccination, “a strong economic recovery” for this year. or.
Thus, the Government hopes that GDP grows this year by about 7%, which, according to the vice president, would make it possible to recover a “significant part” of what was lost in these months of the pandemic, to return to the levels prior to it already in 2022.
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