News Column

Spain's Debt Near 100 pct of 2014

September 30, 2013

EFE Ingles

Spain's public debt will reach 99.8 percent of the gross domestic product at the end of 2014, totaling some 1.05 trillion euros (about $1.41 trillion), Finance Minister Cristobal Montoro said Monday.

The public debt will rise due to the need to finance government operations, Montoro said during the presentation of the 2014 budget bill to Parliament.

Interest payments could total 36.59 billion euros (about $49.4 billion) next year, down 5.2 percent from the 2013 level.

The lower interest payments on Spain's bonds reflect "a new climate of confidence" in the markets, translating into a drop in the country's risk premium and a more favorable borrowing environment for the Treasury, Montoro said.

The Treasury expects to issue a total of nearly 243.89 billion euros (about $329.2 billion) in bonds next year to roll over maturing debt and provide liquidity, the finance minister said.

The 2014 budget is austere due to the effort to reduce the deficit to 5.8 percent of GDP, while still reflecting prospects for an economic recovery, Montoro said.

Ministries' available spending will fall by 4.7 percent in 2014, while the budget bill calls for pensions to rise 0.25 percent, with pension payments consuming 35.90 euros of every 100 euros in the general budget, up from the 35.20 euros in the 2013 budget.

Original headline: Spain's debt to near 100 pct of GDP in 2014


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Source: (c) 2013 EFE News Services (U.S.) Inc.


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