• Spain strengthens the confidence of international investors for differential growth and commitment to the correction of imbalances
  • During the appearance at the Committee on Budgets in the Congress of Deputies, Carlos San Basilio emphasizes that Spain is very well prepared for the normalization of monetary policy

The Secretary General of the Treasury, Carlos San Basilio, has appeared today before the Committee on Budgets of the Congress of Deputies to respond to political groups on the strategy of financing the Treasury in 2019. The main messages of his appearance are:

Budget approval would have positive effects

The approval of budgets would provide stability, since they combine budget consolidation with policies that drive growth. Budgets include a significant structural adjustment of the deficit.

It would also have positive effects on external valuation, including rating agencies, which consider them a relevant factor. The European Commission has also indicated that its approval is positive.

Investor Confidence

The Treasury is confirming the confidence of national and international investors. The growing interest of Asian investors is especially relevant.

This recovery is motivated by the solid growth of Spain, certified last week by the International Monetary Fund and the commitment to correct imbalances, especially the deficit and public debt.

Spain is prepared for the normalization of monetary policy

This situation is based on a balanced and sustainable macroeconomic framework that can continue to attract investors.

Likewise, the composition of the debt has been changing in recent years by extending the average life of the outstanding debt, taking advantage of good financing conditions and increasing non-resident investors. The Treasury expects that in 2019 financing costs will remain low, around 0.65%.

All these factors position the Treasury in a good situation and cover it against possible increases in interest rates.

The Treasury expects to make a net issue of 35,000 million in 2019. The interest payment is estimated to amount to 31,400 million euros.

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