Montoro, Tuesday in Congress. / The country-LIVE! / Álvaro García
Neither staff costs or heading for all ministries together equal the invoice that the Government intends to pay only for the interests of the public debt, which in 2015 will exceed 100% of the Gross Domestic Product (GDP) for the first time in more than a century. The State Budget (PGE) provide a total of 35.490 billion euros for these financial costs, 12% more than the 2014, which is an average of 100 million euros a day. The improvement in the markets, which have been drastically reduced in the past year profitability is asked to put their money in bonds and Spanish lyrics, does not offset the increase in public liability in the accounts presented Tuesday.
The government had budgeted 36,616,000 for 2014 interest in the accounts submitted last year, but Economy Minister Luis de Guindos, moved last week that the Treasury would achieve savings of 5,000 million compared to the figure, exactly the same amount that was saved last year.
In addition, the economic and financial report accompanying the PGE states that “the fall in interest rates on new issues ability to close the year with a ratio of GDP in interest on terms similar to the previous “national accounting exercise, which would be 3.25% with a cash basis. In national accounting, interest expense amounted to 31.650 million, which would be 2.90% of GDP.
is a mouthful to be only the maintenance of the debt and that, despite the high level, has improved in relative terms: the average rate of the securities issued by the Treasury last year stood at 1.74% until August, while the average debt in circulation-that words, including the emitted this year amounted to 3.59%, which was made possible though the average life of the bonds issued by the state have increased.
Spain needs to keep costs moderate in view of the expected escalation of public debt, which surpassed one billion euros for the first time in history, according to data for the month of July, which are the most recent. And its relation to GDP will also increase despite the new methodology used by the National Statistics Institute (INE), by European mandate for the whole EU, increases the volume of the national wealth and, therefore, has now reduced by two percentage points the weight of debt on it.
With these new estimates, public debt in 2013 passed 94.4% to 92.1% of GDP. And earlier this year would be around 96.5%. To end the year, the government now estimates following the modification that the liability will end on 97% of GDP when, to date, expected to close the year at 99.5%
In 2015 the Treasury market prompted 665 million every day
Weight this does not prevent the liability exceeds the barrier psychological of 100.3% of GDP in 2015, which means that Spain will appeal to the markets in 2015 by an amount almost coming. And the Treasury expected to auction 242 765 000, which is a record if the year 2012, in which the banking bailout charged with issuing 40.000 million excluding extraordinary. This 2015, the state placed 665 million a day.
Of this total, most serving to renew maturing debt. Net (the difference between all securities that are issued and maturing) amount to 47,000 million, representing a reduction of 14% compared to the forecast for this year, which will be about 55,000 million a year ago while borrowing had budgeted 65,000 million.
the investment community, playing infiltrated by stimulus measures from the European Central Bank (ECB), seem willing to lend money to Spain, in five-year notes came to pay a lower than the United States in the secondary market, where you buy and sell debt securities issued and interests.
This Tuesday the risk premium, which is the differential of interest paid by bonds 10 years in Germany versus the rest, it narrowed in the Spanish case of 125 basis points (1.25 percentage points) to 119, a sign that, despite political uncertainties, the Spanish debt is whetting the appetite.
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