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Spanish debt to near 100% of GDP in 2014

Last Updated: Tuesday, October 1, 2013 - 12:03

Madrid: 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 USD 1.41 trillion), the government has announced.

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

Interest payments could total 36.59 billion euros (about USD 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 USD 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.


First Published: Tuesday, October 1, 2013 - 12:03
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