The Government has detailed the figures for the issuance of public debt to be carried out in 2021, after this Thursday Nadia CalviÃo, Vice President and Minister of Economic Affairs and for Digital Transformation, announced the “good news” of a reduction of the planned quantity.
Carlos San Basilio, Secretary General of the Treasury, has specified that the net issuance will be estimated in 2021 at exactly 100,000 million euros, below the 110,000 million euros previously estimated and included in the General State Budgets. The setting is due to “an evolution of the box somewhat better than anticipated in the last months of last year “, an evolution of the data and in no case a revision of the proposals of the Executive, according to San Basilio has expressed.
However, the gross emission will be higher than expected and will reach the record figure of 289,138 million euros, compared to 277,059 million marked in the previous year. The Government, therefore, increases debt issues by 4.4% to raise an unprecedented amount in Spanish history. The average cost of issuance is very low, 0.18%, so the increase in gross is attributed to the accumulation of maturities to be met by the State. The amortizations of bonds and obligations increased to 94,380 million euros, while those of the Treasury bills, already affected by indebtedness during the panthemia, reached 94,758 million euros.
In favor, low rates and the collection
Regarding the cost of new issues, it helps the minimum of 0.18%, This is achieved thanks to the European scenario of low interest rates and an expansive economic policy marked by Brussels. In 2019, the rate had been lowered to 0.23% and costs from the past are already far behind, such as the 3.90% that was assumed in 2011.
CalviÃo already announced on Thursday that the 2020 tax revenue forecasts “have been exceeded” by collection, so that the need for debt could be lowered, albeit in its net magnitudes. The Government, as San Basilio has recognized, had thrown a piece of information under the “traditional criterion of prudence”, a prevent before curing.
The 100,000 million euros of net debt will actually be less than the 109,922 million in 2020, but the gross sum increases, again conditioned by the health and economic crisis caused by the coronavirus.
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