Spanish Deputy Prime Minister and Minister of Economic Affairs, Nadia Calviño, announced that Spain's net debt issuance this year will be 75 billion euros, which represents a decrease of 25% over the initial forecast in January. Calviño made this announcement on Monday in the moments leading up to the start of the Eurogroup meeting.
According to a government statement, the Spanish Treasury will thus reduce the volume of net financing planned for 2021 by 25 billion euros, by now reducing the issuance by 5 billion euros in addition to the 20-billion cut announced in July
The gross public debt issuance will also be cut down to 264.17 billion euros.
Spain will be the first country to receive the first disbursement of funds from the Next Generation EU program amounting to 10 billion euros. The payment will be effective soon, once the Commission's preliminary positive assessment was received last Friday, one month before the deadline.
The government chaired by Prime Minister Pedro Sánchez assures that this confirms "progress in the execution of the Recovery Plan and the fulfillment of the established commitments."
Increased tax revenues
Likewise, the government welcomes the increase in tax revenues, with improvements in collection higher than expected, especially VAT, personal income tax and Corporation Tax.
According to the statement from the Ministry of Economic Affairs, this highlights "the intensity of the economic recovery."
Both developments have made it possible to reduce the volume of financing required this year.
During 2021 financing costs have continued to be reduced. The average cost of the debt issued in the year will be negative for the first time in history, at -0.02%.
The average cost of the debt stock has also been lowered, standing at 1.65%, which is 21 basis points less than at the end of 2020, which constitutes a new all-time low.
