The Treasury will increase by 5,000 million, up to 60,000 million from last year’s 55,000, debt issues by 2025. The public body has today presented its financing strategy for the current year, emphasizing that this slight increase of 9% will allow “to maintain a wide margin to respond to the extraordinary needs derived from DANA, in line with the commitment to provide all the necessary support for the reconstruction and relaunch of the economy of the affected area.”
The Minister of Economy, Carlos Bodyappeared at the press conference after the Council of Ministers, where he detailed what the “financial prudence” that characterizes this Treasury strategy consists of. “When we talk about elements of prudence, I would like to focus on two. First of all, the lengthening of the average life of the debt, which is around 8 yearssomething very important because it helps us gradually assimilate the increase in interest rates by the ECB.” Those eight years of average life, he explained, mean that each year only around 12% needs to be refinanced -14 % of the total debt, which translates “into an anchor for the rise in interest costs” of the same; given the 450 basis point increase in official rates, the increase in the average cost of debt has barely increased; been in around 56 basis points, he specified.
Hence, most of the issues -55 billion- will be covered with medium and long-term instruments, with the aim of maintaining the average life of the portfolio. The remaining 5,000 million will be raised through Treasury Bills, to continue providing liquidity to these instruments.
The second factor of prudence that the minister has referred to is the diversification of the investment base. “The Treasury has made an effort to access non-resident investors, a broader and more stable investor base; in fact, non-resident investors are already above 44% in 2024, and this will continue to be one of the main objectives for 2025.” The appetite “of international investors, and also of retailers for our Letters” has occurred “in parallel to the progressive withdrawal of the ECB as a buyer of public debt of the entire euro zone, including that of the Spanish Treasury; Therefore, we are facing total normality in the behavior of the financial markets in this progressive withdrawal thanks to that high confidence and that prudence of the Treasury’s financial policy,” he explained. First auction of Letters of 2025: profitability rises to 2, 37%.
Corps has also alluded to sustainable finance: “In 2025 we will continue to bet on green bonds, on the decarbonization of the economy.” The green bonds in circulation already exceed 15,000 million that have been allocated “to finance projects that contribute to the green transition in our country,” he noted.
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