Tesoro Publico
33
The Kingdom of Spain’s path towards stability and growth April 2012
Transcript of Tesoro Publico
The Kingdom of Spain’s path towards stability and growth
April 2012
1
HighlightsIntegrated European response to the financial crisis combined with reforms at the national level
Strong democratic mandate for structural reform and structural fiscal consolidation
An aggressive two‐pronged approach:1. Public sector reform: fiscal consolidation and discipline
Budget austerity towards 2013Strengthening the structural fiscal framework
2. Private sector structural reformLabour Market ReformFinancial Sector Reform
Prudent approach to Funding and Debt Management
2
Spain: the process towards adjustment
Public sector reform: fiscal discipline and sustainability
Private sector structural reforms: towards balanced growth
Funding and debt management
3
Macroeconomic OutlookSince 2011 growth prospects have deteriorated worldwide
National demand will impact heavily on overall growth, partially compensated by the contribution of external demand
Source: Ministerio de Economía y Competitividad and National Statistics Institute.* Contribution to GDP growth.
Macroeconomic scenario(Year‐on‐year growth rates in percent) 2012 (f)
QI QII QIII QIV
Final Consumption Expenditure 0.6 ‐0.7 0.4 ‐5.4 ‐4.0 ‐6.2 ‐3.1Private consumption 0.8 ‐0.1 0.4 ‐0.3 0.5 ‐1.1 ‐1.4Government consumption 0.2 ‐2.2 0.6 ‐2.1 ‐3.6 ‐3.6 ‐8.0
Gross Fixed Capital Formation ‐6.3 ‐5.2 ‐4.9 ‐5.4 ‐4.0 ‐6.2 ‐8.8National Demand* ‐1.0 ‐1.7 ‐0.8 ‐1.9 ‐1.4 ‐2.9 ‐4.4Exports of goods and services 13.5 9.0 13.1 8.8 9.2 5.2 3.5Imports of goods and services 8.9 ‐0.1 6.0 ‐1.3 0.9 ‐5.9 ‐5.1External demand* 0.9 2.5 1.7 2.7 2.2 3.2 2.7
GDP ‐0.1 0.7 0.9 0.8 0.8 0.3 ‐1.7
Other macroeconomic variables
Unemployment rate (in %) 20.1 21.6 21.3 20.9 21.5 22.9 24.3Unit Labour costs ‐2.6 ‐1.9 ‐2.0 ‐1.6 ‐1.6 ‐2.5 ‐1.7Net lending(+)/borrowing(‐) with RoW (% of GDP) ‐4.0 ‐3.4 ‐6.2 ‐2.6 ‐2.5 ‐2.2 ‐0.9
201120112010
‐5.3
1.9
‐4.5
2.41.3
‐11.2
‐8.5‐9.3
4.4
‐7.8
‐10.7‐11.5
‐4.7
6.45.4 5.1
‐12‐10‐8‐6‐4‐202468
2005 2006 2007 2008 2009 2010 2011 2012(f)
Public Private
0.6 1.6
‐1.7
‐6.9‐8.9
‐7.5
‐10.7
2.33.8
6.9
1.0
‐2.7‐2.6‐1.7
‐12‐10‐8‐6‐4‐202468
2005 2006 2007 2008 2009 2010 2011
Non‐financial firms Households
The deleveraging process will continue into 2012
4
Non‐financial firms have continued investing heavily abroad and deleveraging at a high pace
The deleveraging process will be a temporary drag on private consumption expenditure during 2012
Source: Ministerio de Hacienda y Administraciones Públicas and National Statistics Institute.(f) Forecast
Sectoral Balances. Net Lending(+)/Borrowing(‐)
(Percent of GDP)
Households and Non‐financial Firms. Net Lending(+)/Borrowing(‐)
(Percent of GDP)
Source: National Statistics Institute.
11.8%
13.9%
10.2%
8.0% 8.0%
6.9%7.5%
8.3%
12.2%
9.0%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
2000 2007 2009 2010 2011
Residential Investment Employment (FTE)
5
Rapid adjustment in the residential construction sectorThe adjustment in the construction sector has been especially intense
in terms of labour
Nominal price adjustment has been very heterogeneous between Regions, ranging from declines of 35% to 17%
Relative Size of the Construction Sector(Employment over total employment and residential
investment over GDP)
Source: National Statistics Institute.
Nominal Price Adjustment in Ireland, UK and Spain(Index 2005=100)
Source: Ministerio de Fomento, CSO and ONS.
‐1.3 million Jobs
20
40
60
80
100
120
140
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ireland UK Spain
‐4%
‐2%
0%
2%
4%
6%
8%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
95
96
97
98
99
100
101
102
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
5
10
15
20
25
Hours per employee (Left scale, 2000=100)
Unemployment rate (Right scale)
The labour market
6
Clear sign of duality: hours worked per employee have increasedwhile unemployment rises, mainly in the construction and industry sectors (89% of total job losses)
Wage per hour worked did not react to shedding of labour. Only in 2010 and 2011 it managed to stabilise
Unemployment rate and hours worked per employee
Source: National Statistics Institute.
Wage Per Hour Worked of Employees(Growth rate in percent, and moving average)
Source: National Statistics Institute.
9095
100105110115120125130135
2005 2006 2007 2008 2009 2010 2011
UK Spain Germany Italy
95
100
105
110
115
120
2005 2006 2007 2008 2009 2010 2011
UK Spain Germany France Ita ly
7
Wage moderation and lower price pass‐throughSince 2009 unit labour costs have contracted by 5.9% due to wage
moderation and the increase in productivity
Export prices have moderated their growth rate, despite growing energy costs
Nominal Unit Labour Costs(Index 2005=100)
Source: Bank of Spain.Source: Eurostat.
Export Price Indexes(Index 2005=100)
‐40%‐30%‐20%‐10%0%
10%20%30%40%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
‐8%‐6%‐4%‐2%0%2%4%6%8%
Exports (Left scale) Imports (Left scale) Balance (Right scale)
80
90
100
110
120
130
140
2005 2006 2007 2008 2009 2010 2011
UK Spain Germany France Italy
8
Deleveraging has also affected export orientationThe gap between exports and imports of goods and services has
diminished, posting a surplus in the last quarter of 2011
Spain has maintained the relative share vis‐à‐vis main peer countriesdue to higher extensive and intensive margins of Spanish exporting firms
Exports less Imports of Goods and Services(In percent of GDP)
Source: National Statistics Institute.
Exports of Goods and Services(Index 2005=100)
Source: Eurostat.
9
Spain: the process towards adjustment
Public sector reform: fiscal discipline and sustainability
Private sector structural reforms: towards balanced growth
Funding and debt management
The Government’s fiscal policy: discipline & sustainability
10
The deterioration in economic indicators entailed a deviation in the 2011 target deficit: from 6% to 8.51% of GDP
2/3 of the deviation was attributable to Autonomous Regions
The new Government took office in December 2011 and adopted immediate measures by Royal‐Decree to compensate for the 2011 deviation in the deficit target: €15 bn (1.4% of GDP)
€8.9 bn cuts in spending: minimum wage & civil servants’ wage freeze, 20% reduction in subsidies to political parties and social agents, rationalisation of administrative structures, no new public employment in 2012
€6 bn in tax increases: temporary increase in Personal Income tax, selective tax rate increase on real estate, oil subsidies removal
New Programme against tax evasion under evaluation: €8 bn additional revenue expected
These measures came into force in 1 January 2012
App
roved on
31/12
/201
1
The Government’s Fiscal Policy: Fiscal Consolidation Path
11
The commitment is to continue with the fiscal consolidation path in accordance with realistic and strict projections and assumptions
Firm commitment with compromises agreed at EU level
The public deficit objective for 2013 remains unaltered
Structural Balance commitments will be reinforced. In 2012, the adjustment in structural terms will be around 4.0 p.p. of GDP
Source: Ministerio de Hacienda y Administraciones Públicas.
Net Lending(+)/Borrowing(‐) of the General Government 2011‐2013In percent of GDP 2011 2012 2013Central Government ‐5.1 ‐3.5 ‐2.1Autonomous Regions ‐2.9 ‐1.5 ‐1.1Local Governments ‐0.4 ‐0.3 ‐0.2Social Security Administrations ‐0.1 0.0 0.4General Government ‐8.5 ‐5.3 ‐3.0
Central Government Budget Bill for 2012 (I)
12Source: Ministerio de Hacienda y Administraciones Públicas.
2011 2012 ReductionCentral Government ‐5.1 ‐3.5 ‐1.6Autonomous Communities ‐2.9 ‐1.5 ‐1.4Local Governments ‐0.4 ‐0.3 ‐0.1Social Security Administrations ‐0.1 0.0 ‐0.1TOTAL ‐8.5 ‐5.3 ‐3.2
Net Funding(‐)/Borrowing(+) Requirements in percent of GDP
Source: Ministerio de Hacienda y Administraciones Públicas.
Measures adopted in the Central Government Budget (% of GDP)1: Increase in Income 0.82: Expenditure reduction (excl. Committed expenses) 1.73=1+2: Fiscal Consolidation Effort 2.54: Increase in Committed Expenses ‐0.95=2+4: Total Expenditure reduction 0.86=5+1: Total Adjustment in Net Borrowing Requirement 1.6
The consolidation effort of the Central Government amounts to 2.5% of GDP, approximately €27 billion. It’s the largest fiscal adjustment to have taken place in democracy
Reduction in the expenditure of Ministries of €13.4 billion, a 16.9% reduction vs 2011 BudgetElimination of corporate tax rebates, taxes on tobacco and the temporary increase in Personal Income tax adopted in January 2012 (€12.3 billion)Income related measures and 40% of expenditure‐side measures are in place and not subject to be modified by the budgetary process
Draft Presented 03/04/2012
4.1
0.2 0.8 1.1 2.50.8
2.50.4
12.3
02468
101214
Tax Deferral
AmortisationSchem
e
FinancialExpenditure
Installments
ForeignDividends
Special Tax
Stamp and
Duty Taxes
Incometax
Corporate Income Tax Other Taxes Total
Central Government Budget Bill for 2012 (II)
13
Personal Income Tax and Corporate Tax measures account for 77% of total income‐side measures
In the expenditure side, most of the reduction stems from capital transfers and current transfers
Source: Ministerio de Hacienda y Administraciones Públicas.
Income‐side measures(In € bn, budgetary terms)
Expenditure‐side adjustment(In € bn, Excl. Regional Financing System, budgetary terms)
Source: Ministerio de Hacienda y Administraciones Públicas.
‐0.4
‐8.1
0.8 ‐0.4
‐1.1
1.5
‐4.0 ‐4.3
‐10‐8‐6‐4‐202
Public
Employee
s
Public
Pensions
Goo
ds and
Services
Financial
expe
nditures
Curren
tTransfers
Real
Investmen
t
Capital
Transfers
Current expenditures CapitalExpenditures
Total
2
3
4
5
6
7
8
9
2004 2005 2006 2007 2008 2009 2010 2011 2012
Jan
Feb
‐5.5%
‐2.9%‐1.94%
‐6%
‐5%
‐4%
‐3%
‐2%
‐1%
0%
Jan
Feb
Mar Apr
May Jun
Jul
Aug Sep
Oct
Nov Dec
20102011
2012
Budgetary execution of the Central Gov. up to Feb 2012
14
The cumulative deficit of the Central Government reached €20.7 billion (+49.3 % yoy):
Expenditure up by 27% yoy due to frontloading in current transfersamong Public Administrations with zero net effect on General Government deficitIncome down by 5.7% yoy, pending full effect on tax collection of income side measures
Source: IGAE.
Deficit(‐)/Surplus(+) of the Central Government excl. Autonomous institutions (EDP)
(% of GDP)
Source: IGAE.
Current Transfers between Public Administrations in January and February of each year
(In Euro bn)
Draft Budgetary Stability Reform
15
Guaranteeing debt sustainability at all levels of government; 60% debt to GDP target and zero structural deficit by 2020
Ex‐ante budgetary control via: i. Expenditure ceilings ii. Expenditure growth capped below nominal GDP
Reinforced monitoring system via quarterly reports of sub‐national units in National Accounting terms
Ex‐post auditing and sanctioning system
Draft proposed by Govt. on 27/01/2012To be approved in
April 2012
Source: Ministerio de Economía y Competitividad.
Budgetary and Financial Sustainability
GENERAL RULES:
• Budgetary balance or surplus
• No structural deficits
• Expenditure growth capped below headline GDP growth
• Expenditure ceiling for all levels of Government
Budgetary and Financial Sustainability
GENERAL RULES:
• Budgetary balance or surplus
• No structural deficits
• Expenditure growth capped below headline GDP growth
• Expenditure ceiling for all levels of Government
Budgetary Planning and Control
• Reinforcement of Budgetary control
• Expenditure ceilings also introduced at the Regional and
Local Government levels
• Budget surpluses to be dedicated to debt reduction
Budgetary Planning and Control
• Reinforcement of Budgetary control
• Expenditure ceilings also introduced at the Regional and
Local Government levels
• Budget surpluses to be dedicated to debt reduction
Preventive and Corrective Arm
• Affects all levels of Government: Central, Regional, Local and Social
Security
• Correction of deficits and debt thresholds
• Early warning system → adoption of corrective measures
• Establishment of sanctions in case of non‐compliance
Preventive and Corrective Arm
• Affects all levels of Government: Central, Regional, Local and Social
Security
• Correction of deficits and debt thresholds
• Early warning system → adoption of corrective measures
• Establishment of sanctions in case of non‐compliance
Transparency and Disclosure
• Surveillance at all stages of budgetary approval process
• Reporting in terms similar to the ones under EDP
• Scope of information to be published broadened
Transparency and Disclosure
• Surveillance at all stages of budgetary approval process
• Reporting in terms similar to the ones under EDP
• Scope of information to be published broadened
Additional related measures adopted
16
Fund for the Payment to Suppliers FFPP, up to €35 bnSettling the accounts payable of local governmentsCommercial debt is transformed into financial debt in favorableterms liability‐side of the FFPPThe transaction will inject liquidity into the real economyDesigned for local corporations, but it may be extended for Regional Governments
ICO‐CCAA, € 10bn, up to €15 bnDesigned for regional governments. Two tranches: i) paying maturing financial debt ii) settling commercial debt of RegionalGovernmentsProvides liquidity to Regional GovernmentsRegional Governments that make use of the line, voluntarily accept being subject to strict financial and fiscal conditionalityTransitory part of permanent solution
Approved 13/04/2012
Approved03/02/2012
17
Spain: the process towards adjustment
Public sector reform: fiscal discipline and sustainability
Private sector structural reforms: towards balanced growth
Funding and debt management
Financial sector reform: Initial Steps
18
13.2% reduction in branches and 10.5% in staff since end 2008 Number of savings banks decreased from 45 to 15Over 90% of the assets managed by savings banks
transferred to commercial banksImproved Governance structure by means of new
legislation
Creation of FROB
‐ Liquidation of non‐viable entities‐ Support restructuringprocess of viable entities
2009 2011
RegulatoryReform ofthe Savings
Banks
Law toStrenghthenCapital Base
andConfidence
Quarterly reporting on real estate exposures and impaired assets since January 2011
Core capital equivalent requirements increased to 8%/10%. Process complete in September 2011
Despite the provisioning already conducted (approx. €105 bn, 9.8% of GDP) the uncertainty associated with the valuation of land and real estate assets requires further consolidation and provisioning
Royal Decree‐Law for the
Reform of the Financial SectorApproved by Parliament 16/02/2012
Royal Decree‐Law for the
Reform of the Financial SectorApproved by Parliament 16/02/2012
Financial sector reform
19
1. Improve confidence, credibility and access to capital markets by focusing on the asset‐side2. Reactivation of the real estatemarket and credit supply3. Trigger the final round of consolidation in the Spanish banking sector
Royal Decree‐Law for the Reform of the Financial Sector
Significant increase in
provisions and capital buffers on land and real
estate exposures
Incentives to merge
Deadlines•Main 31st Dec
2012• In case of merger: integration plans submitted by 31st
May 2012; If accepted, 31st Dec
2013
Financial burden mainly on financial
institutions
Increase in provisions & capital buffers on real estate exposures
20
Strong balance sheet restructuring due to significant price adjustment
Implicit decline in the value of collateral considering the average LTV of the portfolios: 87% for land and 82% for housing under development
Provisions/buffer to be added to existing coverage
Source: Ministerio de Economía y Competitividad.
29%23%
10%
20%
15%
25%27%31%
31% 27% 25%
0%10%20%
30%40%50%60%
70%80%90% Capi ta l Buffer
Additiona l Provis ionsCurrent Provis ions
Land Ongoing Developements
Finished Properties and Housing
80%
65%
35%
Source: Ministerio de Economía y Competitividad.
Land (31% ‐‐‐> 80%)
(€ 73 bn)Housing under development (27% ‐‐‐> 60%)
(€ 15 bn)
Other Assets (25%‐‐‐>35%)
(€ 87 bn)
25 bn 15 bn 10 bn
Non Problematic
Assets (148 bn)
31% ‐‐‐> 60% 20%
25% ‐‐‐> 35%
Specific Provisions (against profits)
Capital add‐on (against retained earnings, capital increases or conversion of
hybrids)
Generic Provisions (against profits)
Problematic Assets (175 bn)
Expected amount
7%
Construction and real estate developers
normal portfolio
27% ‐‐‐> 50% 15%
The reform will spur a second wave of integration
21
Strict conditionality of new integration processes…
Submission of integration plan to the Ministry of Economy by May 30th to be fully operative as of January 1st 2013Resulting entity with balance sheet 20% higher than largest participating institutionImprovements in corporate governanceReduction of exposure to RRE and constructionIncrease in credit to productive activities
…but also rendering some advantagesDeadline for provisioning and capital buffer increase extended one additional yearWritedown of impaired assets against equity allowedExtension of FROB’s margin of action allowing for acquisition of Co‐Co’s
Implementation calendar full on track. Milestones:
March 31st: all institutions presented cleanup plans
April 20th: deadline for the Bank of Spain to assess all plans. → if cleanup plans are not approved: banks will be required further measures, including the obligation to present a merger proposal
May 31st: deadline for mergers proposals
June 30th: mergers approved by the Ministry of Economy
December 31st 2012: end of process. Compliance with all the cleanup measures
The labour market reform: complete overhaul of the regulatory framework
22
MEA
SURE
S
Improving efficiency and reduce labour market duality
Creating effective mechanisms for internal flexibility; adjusting internal wage bargaining, reform the collective
bargaining system
Enhancing young workers’ employability
Incentivising permanent contracts
A) Reduction of dismissal costs A.1) Clarification of objective causes
for fair dismissal A.2 ) Unfair dismissal: severance pay 45 days up to 42 months to 33 days per year worked up to 24 months A.3) Fair dismissal: severance pay of 20 days per year, up to 12 months
A.4) Elimination of “procedural wages”
A) Firm‐level wage bargaining prevails over national, regional or
sector agreements
A) Temporary Employment Agencies authorised to act as
private agencies
A) New types of contracts A.1) Permanent contract
directed at SMEs with 50 or fewer workers and self
employed A.2) Part‐time contract
B) Economic causes for dismissal: 3 or more consecutive quarters of falling
profits
B) Extinguished collective agreements limited to 2 years
B) Improved professional training; individual right to
professional training
B) New bonuses for hiring of young workers and long‐term
unemployed and for conversion of temporary
contracts
C) Public Administrations allowed to dismiss based on objective causes
C) Enhancing adaptation to economic stance via:
C.1) Functional mobility of workers C.2) Working‐time reduction
C.3) Elimination of red‐tape for reduction of hours worked
C) Internship contract for workers under 30
C) Prohibition to chain temporary contracts for more
than 24 months
MAIN OBJECTIVES
Source: Government of Spain.
More reforms: an ongoing agenda
23
New measures will be adopted to increase the competitiveness and flexibility of the Spanish economy, and to streamline costs.
€10 bn savings in reforms aimed at improving the efficiency in the management of the main public services such as health and educationReduction of red tape and bureaucratic procedures, and removal of
opening licenses for new SMEsReinforcement of the internal market at national level, seeking a
convergence towards a common regulatory framework in all 17 regionsA centralised National Agency for debt issuance
Transformation and simplification of the National Regulatory Bodies, avoiding overlapping competences and fostering professionalism and less political influence
Approved by Govt. on 24/02/2012
Measures to be presented shortly in Spain’s National Reform Programme for 2012
24
Spain: the process towards adjustment
Public sector reform: fiscal discipline and sustainability
Private sector structural reforms: towards balanced growth
Funding and debt management
Main features of funding strategy
25
Strong commitment with the Public Debt market
Rigorous adherence to auction calendar
Catering to market demand, at market rates
47% of medium and long‐term issuance already done
Manageable cost of issuance and debt outstanding, stable duration and average life
Prudent management of refinancing risk
30
50
70
90
110
130
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
UK Spain Germany France Italy
Projected Debt to GDP dynamics in 2012
26
The projected Debt/GDP ration at end 2012 increases by 11.3%, reaching 79.8% of GDP…
… 6.0 p.p. of GDP are due to accounting issues: transformation of commercial debt from regions and local governments to public debt (FFPP), ICO line for regions (ICO‐CCAA), securitisation of the electric deficit (FADE), imputation of loans to UE countries under financial assistance, reduction of the denominator, among other elements…
In any case, the level will be below the EMU average (90.4%)
Source: Eurostat and OECD.
Debt to GDP ratio of General Government(% of GDP, EDP)
Source: Ministerio de Hacienda y Administraciones Públicas.
Breakdown of the projected increase in 2012 Debt/GDP ratio for General Government
(% of 2012 GDP)
FactorIncrease in Debt to GDP ratio
Funding Requirements (Incl. ESM) 5.3FFPP / ICO‐CCAA 3.9FADE 1.0Loans to Geece‐Ireland‐Portugal 0.9Change in nominal GDP 0.6Rest ‐0.4Total 11.3
93.8
85.995.6
40.4
94.5
97.0
0
25
50
75
100
2010
Jan
Projection
2010
Executed
2011
Jan
Projection
2011
Executed
2012
Apr
Projection
2012
Apr
Execution*
2010 2011 2012
Funding Programme for 2012
27
In line with initial Treasury estimates
The bulk of net issuance carried out through medium‐ and long‐term issuance in order to contain refinancing risk
Until April 4th the Spanish Treasury has already funded 40.4 billion (47.0%) of the total expected amount of medium‐ and long‐term gross issuance of 86 billion euro, well ahead of its funding programme for the year
Tesoro funding in 2012 (Billion Euro)
1: Funding requirement (=Net Issuance) 36.82: Redemptions of medium‐ and long‐term bonds ‐50.13: Net issuance medium‐ and long‐term bonds 35.84 = 2 + 3: Gross issuance of medium and long‐term bonds 85.95: Net increase in T‐Bills 1.06 = 5 + 3: Net change in outstanding debt 36.87: Forecast Outstanding Central Government Debt at end 2011 628.9
Source: Ministerio de Hacienda y Administraciones Públicas.Source: Secretaría General del Tesoro y Política Financiera.
Funding Programme. 2010‐2012(Gross issuance, medium and long‐term bonds, in
billion Euro, *up to April 4th 2012)
*up to April 4th 2012
Main features of the execution for 2012
28
Despite volatility in European Public Debt markets, average cost at issuance and average cost of debt outstanding remain subdued
Stable duration and average life of debt portfolio.
4.024.073.69
3.003.90
2.56
1.0
2.0
3.0
4.0
5.0
6.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
*
Average cost of Debt outstanding Average cost at issuance
Source: Secretaría General del Tesoro y Política Financiera.
Cost of debt outstanding and cost at issuance (As of March 31st , in percent)
4.224.32
6.37
6.55
0.0
2.0
4.0
6.0
8.0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
*
Duration Average l ife
Duration and Average Life(As of March 31st , in percent)
Source: Secretaría General del Tesoro y Política Financiera.
0%
10%
20%
30%
40%
50%
60%
CreditInstitutions
Pension,Insurance andMutual Funds
Households &non‐financials
Spanishofficial
institutions
Non‐residents
2009 2010 2011 2012
Total unstripped Government debt by Holder(Registered. In percent of total portfolio)
29
Changes to investor base in 2012‐Q1
Source: Secretaría General del Tesoro y Política Financiera.* As of February 28th 2011.
Increase in national investor participation in 2012 linked to increased issuance during the first months of the year and liquidity measures adopted…
…coupled with a reduction in the percentage of non‐residents’holdings
0
50
100
150
200
250
Jan
Feb
Mar Apr
May Jun
Jul
Aug Sep
Oct
Nov Dec
0
5
10
15
20
25
Jan
Feb
Mar Apr
May Jun
Jul
Aug Sep
Oct
Nov Dec
Letras Bonos Obligaciones Foreign Currency & Other
Treasury Management System
30
Redemption dates of medium‐ and long‐term bonds (principal and coupons) match the biggest inflows of tax revenues
Excess liquidity is lent in the money market each month through repo auctions
Liquidity lines with banks provide an additional buffer
Source: Secretaría General del Tesoro y Política Financiera. Source: IGAE.
Average seasonal index of tax revenues of the Central Government 2008‐2011
(Index 100=average)
Monthly maturity structure in 2012 as of April 4th 2012(in billion Euros)
More and updated information on the Spanish economy
31
http://www.thespanisheconomy.com
For data sources, please click links below each figure or table
32
Thank you for your attention
Íñigo Fernández de Mesa – General Secretary of the Treasury and Financial Policy [email protected]
Ignacio Fernández‐Palomero – Deputy Director for Funding and Debt Management [email protected]
Rosa [email protected]
Leandro [email protected]
Pablo de Ramón‐[email protected]
Ignacio [email protected]
Rocío Chico [email protected]
Carla Dí[email protected]
For more information please contact:Phone: 34 91 209 95 29/30/31/32 ‐ Fax:34 91 209 97 10
Reuters: TESOROBloomberg: TESO
Internet: www.tesoro.esFor more information on recent developments:
www.thespanisheconomy.com
