Central government debt rises to € 18.6bn in Q4
Central Government debt rose to EUR 18,626 mln in the fourth quarter of 2014, up EUR 360 mln from EUR 18,266 mln in the previous quarter, according to figures released by the Finance Ministry?s Public Debt Management Office (PDMO).
About 31% of the debt is held in the domestic market and 69% in the foreign market. The debt excludes intragovernmental obligations and debt of state-owned enterprises.
In December, the sixth tranche by the ESM for EUR 350 mln was disbursed as part of the 10 bln bailout plan, while the IMF’s contribution of EUR 86 mln was suspended due to parliament’s stalling on a crucial foreclosures bill that would help banks recover assets and reduce the level of high-risk nonperforming loans, presently at 50% of the national loanbook.
In November and December the European Investment Bank and the Council of Europe Development Bank disbursed EUR 15 mln and 25 mln, respectively, for infrastructure projects in primary and secondary education.
The issuance of retail bonds continued with sales of EUR 38 mln over the quarter.
Short term securities dominated the market issuance activity, according to the PDMO data, with the total issuance volume in short term securities, including all rollovers, at EUR 869 mln.
The weighted average cost of Treasury Bills for the tenors up to 3 months fell further by 47 basis points vis-à-vis the previous quarter to 3.45%. The stock of short term debt, in nominal terms, increased from EUR 716 mln at the end of September to 736 mln at year end 2014. In November and December, 10-year domestic bonds worth EUR 55 mln had matured. The remaining debt redemptions related to short term debt issued within the quarter or during the previous one. In gross terms, i.e. including rollovers, there were EUR 889 mln in redemptions of Treasury Bills. Additionally loan amortisations amounted to EUR 60 mln, the PDMO concluded.