Bankinter | The Treasury announced its Financing Strategy for 2022. The Treasury ended 2021 with total Gross issuance of 264.312 billion euros and Net issuance of 75.138 billion euros, -25% below the proposed target and -31.6% below 2020 net issuance.
The average cost of debt issued amounted to -0.04% and that of outstanding debt stood at 1.64% (from 1.86% at the end of 2020).
The average maturity of outstanding government debt is 8 years (up from 7.8 years at the end of 2020).
For 2022 they propose a Net issuance of 75 billion euros, a level similar to that of 2021, while the expected Gross issuance is reduced by -10.1% to 237.498 billion euros due to the lower volume of redemptions.
Opinion of Bankinter’s analysis team:
We point out two relevant aspects mentioned by the Treasury for this fiscal year; on the one hand, the importance of the consolidation of the economic recovery in view of the upcoming reduction in the volume of ECB debt purchases (end of the PEPP in March-22) and; on the other hand, the additional revenues from the NGEU this year, whose materialization could entail adjustments in the financing program.