Spain’s Gross Debt Issuance Was Around €198 Bn In 2019, Below €200 Bn For The First Time Since 2011

Spain's gross debt issuance was around €198 bn in 2019, below €200 bn for the first time since 2011Bank of Spain

After issuing  €1,62 bn at 5 years, €1,31bn at 10 years and €510 M at 30 years, the Treasury ruled out any further debt issuances in 2019. The one scheduled for December 12 was cancelled as the state’s financing needs had already been met. The gross debt issuance was around €198 bn and due to lower financing costs it has fallen below € 200 bn for the first time since 2011. On the other hand, the net issuance amounted to almost € 20 bn, the lowest figure since 2007.

In fact, the Spanish Treasury closed the 2019 financial year with financing costs at a historical minimum, around 0.23% for new debt issuances compared to 0.64% in 2018, among other reasons due to investor confidence in the strength of the economy.

It is worth pointing out the increasing importance of non-resident investors, especially from Asia, they hold about 40% of the Spanish debt, while central banks have about 20%, the amount in the hands of national banks is down to 15% and insurance companies have about 10%.

Debt issuance forecasts for 2020, which will be announced in the first days of January, will be conservative, according to the Treasury itself, and in any case, will follow a downward trend.

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