The Foundation for Applied Economics Studies (Fedea) presented this Monday the report entitled ‘Estimation of future spending on interest on the public debt of the CCAAs’, collected by Europa Press, in which it foresees that the Region of Murcia will pay for its debt 219 million euros between 2022 and 2026.
In addition, the report states that Catalonia will be the autonomous community with the greatest increase in interest spending linked to public debt in the next three years, paying up to 2,412 million euros in 2026. And it foresees that the Catalan community have a variation of 1,383 million euros in interest expense in these years.
Regarding this variation between interest expense between 2022 and 2026, the Valencian Community is the second community, with 985 million euros. They are followed by Andalusia (633); Madrid (343); Castilla-La Mancha (270); Castilla y León (223); Murcia (219); Galicia (204); Aragon (152); Balearic Islands (141); Canary Islands (113); Basque Country (104); Extremadura (92); Asturias (72); Cantabria (56) and Navarra (30).
To make this estimate, Fedea took as a reference the nominal GDP growth forecasts and the reference objectives for the public deficit of the Autonomous Communities included in the Update of the Stability Program, the average life and the terms of the public debt currently in circulation. , and the existing interest rates since 2014.
An interest rate of 2.6%
While throughout the 2014-2021 period, the average interest rate for the public debt under analysis was 0.529%, currently it exceeds 3%. In this sense, the estimates of the differential between the interest rate of the debt issued in previous years and the interest rate at which it is currently issued stand at 2.6%.
Thus, if the autonomous communities only issued debt to satisfy the maturities of the debt currently in circulation, the regional interest expense would rise from 3,608 million euros in 2022 to 8,659 million euros in 2026. This means multiplying by 2, 2 the resources currently dedicated to satisfying the financial expenses of the regional public debt.
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