- The net issue is reduced to 35,000 million euros, which will help moderate the State's liabilities
- To date 89.7% of the medium and long-term financing program has been completed
- An additional 1,000 million loan from the MEDE loan has been requested in advance for the financial sector
The Spanish Public Treasury will reduce by another 5,000 million euros the net issue planned for 2016, which will thus be 35,000 million euros. The good conditions to which the Public Treasury has been financed during the year, at historical minimum costs, and the process of reducing the public deficit allow this new emission cut, the second to be carried out during 2016. The improvement also allows for a new early repayment of the ESM loan for the recapitalization of the financial sector, which will contribute to the objective of reducing the weight of public debt on GDP.
In early 2016, the Public Treasury set a target of a net issue of € 45 billion. In April 2016 the intention was announced to reduce this target to 40,000 million euros. 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 stand at 35,000 million. This reduction incorporates a partial and voluntary early amortization of the loan from the European Stability Mechanism (ESM) to the Kingdom of Spain, amounting to 1,000 million euros, which will be officially announced tomorrow at the institution's Board of Directors. Currently, 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 amortization is decided.
With this, the path of reduction of the debt-to-GDP ratio for all Public Administrations started in 2015 continues. 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 issuance forecast in the medium and long term for 2016. The downward trend in interest rates means that the cost Average issuance in 2016 stands at 0.65%, the lowest in history, while the average life of outstanding debt reaches 6.78 years.