PARIS (MNI) – Spain’s Treasury will issue E192 billion worth of new
public debt in 2011, down 14.4% y/y from a projected E224.4 billion, the
Spanish online business publication Cotizalia reported on its website
Thursday, citing the government’s new budget plan.
The lion’s share of those new emissions — E148.7 billion — will
be earmarked to refinance outstanding debt that expires next year, the
publication said. In addition, Spain will owe E27.4 billion in interest
payments alone, equal to about 2.5% of Spanish GDP, the site reported.
That means that new debt — the net new borrowing requirement —
will total E43.3 billion, a 43.15% drop from this year’s E76.177 billion
total. These net new emissions will raise Spain’s debt to GDP ratio to
68.7% in 2011, from this year’s projected 62.8% ratio.
The site also reported that longer term debt would weigh a little
more heavily in Spain’s 2011 issuance program than has been the case in
2010, and that the Treasury is considering issuing about E6 billion in
foreign currency-denominated securities.
–Paris newsroom, +331-42-71-55-40; bwolfson@marketnews.com
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