- The net issuance is reduced to 35,000 million euros, which will help to moderate the liabilities of the State
- To date, 89.7% of the medium and long-term financing program has been completed
- The early repayment of another 1,000 million of the MEDE loan for the financial sector has been requested
The Spanish public treasury will reduce the net issuance planned for 2016 by another 5,000 million euros, which will remain 35,000 million euros. The good conditions to which the public treasury has been financed during the year, at minimum historical costs, and the process of reduction of the public deficit allow this new emission cut, the second that is carried out during 2016. The improvement also allows a new early repayment of the MEDE loan for the recapitalization of the financial sector, which will contribute to the objective of reducing the weight of public debt on GDP.
At the beginning of 2016, the Public Treasury set a net issue of 45,000 million euros. In April 2016, the intention to reduce this objective to 40,000 million euros was communicated. Finally, and as a reflection of the fiscal adjustment, the net financing of the Treasury in 2016 will be further reduced by 5,000 million euros, to 35,000 million. This reduction incorporates a partial and voluntary early repayment of the European Stability Mechanism (MEDE) loan to the Kingdom of Spain, amounting to 1,000 million euros, which will be officially communicated tomorrow at the Board of Directors of the institution. At the moment, the Spanish Treasury is able to finance itself under better financial conditions than the MEDE loan. It is the fourth time since the loan was agreed that an early partial repayment is decided.
This continues in the path of reduction of the debt to GDP ratio for all Public Administrations started in 2015. This ratio stood at 99.8% of GDP in 2015 and it is estimated that in 2016 it will reach lower levels .
To date, the Public Treasury has placed 107,042 million euros, which represents 89.7% of the medium and long-term issuance forecast for 2016. The downward trend in interest rates means that the cost The average issuance in 2016 stands at 0.65%, the lowest in history, while the average life of the outstanding debt reaches 6.78 years.
