Portrait of an Ascending Sovereign Credit
Medium Term Funding Requirement and Borrowing Strategy
External borrowing instruments will represent the most significant share of the overall borrowing volume.
Goal
Principles
Medium Term Borrowing Strategy
Ensure timely and full availability of financial resources for
covering the financing requirement, by maintaining
continuous borrowing opportunities in the international and
domestic financial markets on optimal terms and conditions
Flexibility (towards timing, maturities and currencies)
Achieve balance between risks and costs
Consistency and transparency to markets
General Financing
Requirement
Central Government Budget Balance
Net Lending
Other Flows
at the Treasury`s Accounts
Outstanding Central Government
Debt Redemptions
(domestic and external)
Refinancing
Borrowing Instruments (BASE scenario)
Benchmark issuances in global capital markets
Continuing issuances in domestic market
Loans from international financial institutions (NIB, EK SURE)
Alternative Instruments
Niche capital market instruments (JPY, CHF, etc.)
Loans from international financial institutions (EIB, CEB, etc.)
Private placements (reverse enquiries)
Central Government financing estimation
(2020-2022, EUR million)
2020
30-September-2020
2020
|Jan-Sep | Oct-Dec |
2021
2022
Central government
budget balance, net
-152
-1 174
-1 326
-1 512
-990
Pre-funding
Strategy
For
lending and other flows
Outstanding central
government debt
-755
-561
-1 315
-1 426
-707
redemption
Of which:
Domestic debt repayment
-113
External debt repayment
-641
-1
-560
-114
-1 201
-624
-83
Total
-906
Gross borrowing
2 315
-1 735
645
-2 641
-2.937
-1 697
2 960
1 903
1 500
Of which:
International issuance
1 550
0
1 550
1 200
600
Note: Indicative in the planned period
Debt
-92
-1 334
33
The borrowing volume could be increased in case of:
Budget execution
Necessity to cover additional expenses in relation to the
Covid
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