J.L.M. Campuzano (Spanish Banking Association) | The annual growth rate of the outstanding balance of securities representative of the debt issued by Eurozone residents has slowed, rising 1.4% in March compared with a previous 1.3%. As far as the outstanding balance of listed stocks goes, this grew 0.9% in March compared with 0.7% in February.
1. The gross amount of securities representative of debt totalled 610.3 billion euros in March; amortisations stood at 551.7 billion. Net issuance was 58.6 billion.
2. The growth rate of the outstanding balance of short-term paper issues rose 3% in March; in the case of long-term, fixed rate securities, their annual growth rate was 2.8%; long-term paper at variable rates saw a 4.8% decline in the annual growth rate.
3. The growth rate in the outstanding balance of debt securities issued by companies moderated to 9.4% (from 9.9% before); that of financial institutions fell 1.3%; the outstanding balance of debt issued by the Public Administration rose 1.6%.
4. The gross issuance of stocks reached 22.7 billion euros in March, with amortisations standing at 1.2 billion. Net issuance of stocks was 21.5 billion.
5. In the case of companies, the growth in the outstanding balance of listed stocks was 0.5% and 4.1% in the case of financial institutions. But the market value of the outstanding balance of listed stocks issued in the Eurozone in March grew 16.9%, a significant uptick in the growth rate from the previous 15.4%.
In the end, it’s very true that the financial markets have become an important source of funding for operators. And its growth rate is in line with economic growth. But it’s precisely the moderation in the economic growth rate, against a backdrop of financing conditions which almost can’t be improved on, which reflects the need to take decisions about structure or supply to accelerate growth. On the other hand, forcing financial conditions artificially only means adding more risks in the medium-term to financial stability. And particularly for the financial sector’s stability.