ARDAL: €4.5 bn Needed to Cover Gov’t Debt and Deficit Next Year

ARDAL on Gov't debt and deficit coverage next year (photo by TASR)

Bratislava, December 20 (TASR) – The total amount needed to cover Government debt and the state budget deficit is projected at €4.5 billion next year, TASR learnt from the Debt and Liquidity Management Agency (ARDAL) on Wednesday.

The aforementioned sum stems from the approved state budget for 2018 and is in line with the law on Government debt and guarantees.

Depending on market conditions, ARDAL plans to open one or two new bond lines through a syndicated sale or auction next year. If the situation is favourable and there is demand on financial markets, a new line with a total value of €3 billion will be opened in the spring of 2018 with maturity depending on market conditions (ten-twelve years), and a new line totalling €1.5-3 billion will be opened in the autumn of 2018, with maturity depending on market conditions (shorter to medium maturity).

The total value of bonds sold through a syndicated sale is projected at a maximum of €2 billion, regardless of the number of transactions. Other bond lines might be opened based on debt management needs and investor demand.

ARDAL plans to hold bond auctions once a month also in 2018, usually on the third Monday of the month. It will be possible to auction several bonds on a single auction day, depending on the needs of liquidity management, debt coverage and investor requirements. One to three types of bond are expected to be auctioned in a single auction day, as was the case in 2017.

ARDAL plans to issue T-Bills with a total volume of €1.5 billion to its own portfolio next year.