🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Germany plans to borrow more in 2016, government sources say

Published 14/12/2015, 19:43
© Reuters. German Finance Minister Schaeuble addresses European Banking Congress in Frankfurt

BERLIN (Reuters) - Germany plans to raise some 210 billion euros ($231.76 billion) by issuing bonds and similar debt instruments in 2016, nearly 13 percent more than it borrowed this year, government sources said on Monday.

Finance Minister Wolfgang Schaeuble aims to post a balanced budget in 2016 for the third consecutive year despite the ballooning costs of coping with a record influx of refugees.

Germany is shouldering much of the burden of the continent's biggest refugee crisis since World War Two, with more than one million asylum seekers expected to arrive this year alone.

Germany will need to issue more debt in 2016 because it has to pay back more old debt than it repaid this year, two persons familiar with the government's financial plans said.

Another reason is that this year's budget surplus of probably more than six billion euros will not be used to reduce the overall debt burden of 1.1 trillion euros, the sources said.

Instead, the government has decided to funnel the extra money into a reserve to pay for the costs of coping with the refugees next year.

Both sources also stressed that the planned issuing volume of some 210 billion euros in 2016 could turn out to be lower at the end of the year, as it has in 2015.

After initially having eyed a volume of roughly 200 billion euros, the government ended up borrowing 186.5 billion euros in 2015, thanks to higher-than-expected tax revenues.

© Reuters. German Finance Minister Schaeuble addresses European Banking Congress in Frankfurt

($1 = 0.9061 euros)

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.