Post by account_disabled on Jan 16, 2024 22:58:22 GMT -6
Spanish public debt soared by more than 5% in the second quarter, according to provisional data published this week by the Bank of Spain, a rise that, if confirmed, would be the largest since the first quarter of 2013. The debt of the whole of public administrations closed June at the historical maximum of 1.29 trillion euros after adding 65,744 million since the end of March, a period that coincides with the coronavirus pandemic and the measures adopted by the Government to stop it. This quarterly increase, of 5.37%, is the largest since the first quarter of 2013 (6.76%), in the midst of the financial crisis, which at that time was attributed to the issuance calendar and which was closely linked to regional debt. . The increase in the second quarter of this year, on the other hand, is more related to the evolution of the state debt , which is the largest and grows by 5.
, although there are administrations with greater percentage increases - 25.1% in the case of Social Security and 9.5% in local corporations. In the absence of confirmation of the data, everything indicates that this upward trend has placed the Spanish public debt above 100% of GDP, a level that has not been exceeded since the first quarter of 2017, and that the Government expects it to be widely exceeded. at the end of the year, when it will reach 115.5% of GDP . This increase of twenty points compared to the end of 2019 (95.5% of GDP) is directly related to the Whatsapp Number List pandemic, both due to the costs assumed to stop it and the expected contraction of GDP, which automatically implies an increase in the ratio. This increase increasingly distances the European objective of placing public debt below 60% of GDP, a goal that Spain will not reach at least until 2050, even if it manages to tackle the deficit, according to the Independent Authority for Fiscal Responsibility (AIReF).
To cover the cost of the pandemic , last May the Public Treasury reviewed its financing program for this year, which increased financing needs, both gross and net, by around 100 billion euros. The gross financing needs for this year are thus estimated at 297,657 million euros (196,504 million at the beginning of the year) and the net financing needs - that is, deducting amortizations - at 130,000 million (32,500 million at the beginning of the year). Despite this, the Government maintains that there are no financing problems, since the issues are well received, especially among foreign investors, and interest rates remain low, so it will not be necessary to resort to the European Stability Mechanism ( MEDE). According to data from the Public Treasury statistics , the average life of the debt in circulation was longer than ever in July (7.82 years) and interest rates remain at a minimum, below 2%. In May - the latest data available - almost half of the debt in circulation was in the hands of foreigners.
, although there are administrations with greater percentage increases - 25.1% in the case of Social Security and 9.5% in local corporations. In the absence of confirmation of the data, everything indicates that this upward trend has placed the Spanish public debt above 100% of GDP, a level that has not been exceeded since the first quarter of 2017, and that the Government expects it to be widely exceeded. at the end of the year, when it will reach 115.5% of GDP . This increase of twenty points compared to the end of 2019 (95.5% of GDP) is directly related to the Whatsapp Number List pandemic, both due to the costs assumed to stop it and the expected contraction of GDP, which automatically implies an increase in the ratio. This increase increasingly distances the European objective of placing public debt below 60% of GDP, a goal that Spain will not reach at least until 2050, even if it manages to tackle the deficit, according to the Independent Authority for Fiscal Responsibility (AIReF).
To cover the cost of the pandemic , last May the Public Treasury reviewed its financing program for this year, which increased financing needs, both gross and net, by around 100 billion euros. The gross financing needs for this year are thus estimated at 297,657 million euros (196,504 million at the beginning of the year) and the net financing needs - that is, deducting amortizations - at 130,000 million (32,500 million at the beginning of the year). Despite this, the Government maintains that there are no financing problems, since the issues are well received, especially among foreign investors, and interest rates remain low, so it will not be necessary to resort to the European Stability Mechanism ( MEDE). According to data from the Public Treasury statistics , the average life of the debt in circulation was longer than ever in July (7.82 years) and interest rates remain at a minimum, below 2%. In May - the latest data available - almost half of the debt in circulation was in the hands of foreigners.