👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Spain to cut 2014 net debt issuance on higher tax revenue

Published 23/04/2014, 13:56

MADRID (Reuters) - Higher than expected tax receipts and falling financing costs will allow Spain to sharply cut net debt issuance for 2014 from an estimated 65 billion euros (53 billion pounds), Economy Minister Luis de Guindos said on Wednesday.

Spain is due to present an update of its three-year budget plans to the European Union next week, which will include debt and growth forecasts.

The debt issuance target for 2014 would be "substantially and significantly" lowered, de Guindos told an economic event in Madrid.

Strong recent economic data could prompt the government to raise its 2014 economic growth forecast of 1 percent, which is already higher than the initial estimate of 0.7 percent.

The Bank of Spain expects gross domestic product (GDP) to grow by 1.2 percent this year and 1.7 percent in 2015.

De Guindos said he expected average GDP growth of 1.5 percent in 2014 and 2015 after two years of economic contraction.

"The important thing here is not the exact decimal point ... but that with two years of average growth of 1.5 percent, our outlook is going to be different," de Guindos said.

Spain has already raised 39 percent of this year's gross medium and long-term debt target of 133 billion euros, which includes redemptions of existing debt.

(Reporting by Andres Gonzalez; Writing by Tracy Rucinski; Editing by John Stonestreet)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.