It’s raining (Spanish debt), man!

This same happens with regions’ debt. Since the beginning of the year, they issued € 6,000million, although 80% of their financial needs are already covered thanks to disbursements from Autonomous Liquidity Fund.

Private agents have also taken advantage of these buoyant times to raise funds. Banks have issued more than € 10,000 million, as companies have already sold € 4,000 million. There are two relevant points regarding corporate debt: it comes from new firms in the markets (the last successful case was Grupo Antolín, specialized in car components), and has a longer term maturity than previous issues.

Investors’ confidence on Spanish debt led 10 years bonds to 3.3% levels while it exceeded  a 7% record high in July of 2012. Spain’s Minister of Finance Cristóbal Montoro should really appreciate this debt’s good performance.

Savings in 2013’s debt interests, which amount € 8,500 million, will allow the government to meet the deficit goal of 6.5%. This seemed imposible just some months ago.

National budget for 2014 are to include € 36,600 million of financial costs, which means an estimated average cost of 4.2%. if anything changes, Montoro will be able to resort this line again in order to meet his commitments with Brussels.

Debt isssues fever has also reached other peripheral countries. Portugal already covered almost half of its financial needs.