• The savings in the global calculation of interest is estimated at 350 million euros for the general government
  • The new funds will give liquidity to the Territorial Administrations for 39,869 million under very favorable conditions

In 2015, the Public Treasury will assume a leading role in financing all Public Administrations. Through the new Fund for Financing Autonomous Communities and the Fund for Financing Local Entities, the Treasury will provide up to 39,869 million euros of financing to Autonomous Communities (CCAA) and local entities (EELL). This will raise the net issue figure for the Public Treasury to 55,000 million in 2015 and will allow global savings in interest of around 350 million for all Public Administrations.

The Territorial Administrations will thus be able to benefit from very favorable financial costs, which will improve compliance with the budgetary consolidation objectives. The new system integrates all the state financing mechanisms to the already existing Territorial Administrations. In addition, a new mechanism or facility is created so that the autonomous communities that meet the fiscal objectives can benefit from zero-rate financing. On the other hand, for local authorities, a new facility is enabled through a mechanism aimed primarily at financing investments on very favorable terms.

The replacement of the CCAA and EELL issue by Treasury issue will generate savings as a result of the lower interest rates at which the Treasury is financed in relation to the Territorial Treasuries. These savings are estimated at around 350 million euros in 2015 for all Public Administrations.

As a result of these measures, the Treasury forecasts that the net issue for 2015 will reach 55,000 million euros, the same figure as that registered in 2014. This amount is 8,000 M € higher than that announced last September because the Treasury will have than to issue more debt to replace the indebtedness of Autonomous Communities and Local Entities.

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