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Germany eyes record debt issuance in 2021 despite slightly lower borrowing at year-end By Reuters

by Mike Robinson

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© Reuters.

BERLIN (Reuters). Germany will issue 4billion euros more debt this quarter than originally planned due to fewer companies tapping the WSF (government economic stabilisation fund) than anticipated during the pandemic. The Federal Finance Agency stated Tuesday.

The agency reported that overall debt issuance in 2021 will surpass 482 billion euros despite slightly lower borrowing needs towards the end of 2018.

According to the agency, Europe’s largest economy will issue total debt worth 104 Billion Euros in October-December. This does not include inflation-linked debt.

According to the finance agency, 47 billion euros will be raised on capital markets (3 billion more than was originally expected) and 57 million euros on money market (down 3 miliarde euros over the prior sum).

Olaf Scholz (Finance Minister) has requested parliament to lift the debt brake from the constitution. The new law will permit net debts of as high as 240 billion euros to cover emergency actions in response to the COVID-19 Pandemic.

The refinance of existing debt is another factor. More than 100 million euros worth of debt from the past quarter had to be paid and then rolled over into new loans.

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