Tue. Apr 23rd, 2019

Spanish debt held by foreigners is close to 45% at the close of 2018

Spanish debt held by foreigners is close to 45% at the close of 2018



Foreign investors continue to raise their stakes in Spain despite the slowdown alerts from the global economy and by the end of 2018 they had almost 45% of Spanish debt outstanding, more than 430,000 million euros.

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According to the latest data updated by the Treasury, foreign investors owned exactly 44.85% of the Spanish debt, above the 44.12% of a year earlier, with an increase of 6.75% of the volume in their hands .

In 2011, in the midst of the economic crisis, foreign investors reduced their exposure to Spain to the minimum levels of recent years, to represent 34.55%.

As of 2013, the bet of non-residents for Spain has been recovering, which, according to analysts consulted by Efe, confirms the great acceptance that the country has, that in the last auctions of short, medium and long debt The term has been financed at historical lows, and in some cases, with negative interests.

The general elections of April 28, according to experts, can leave a very fragmented national Parliament and a minority government, but that possibility has not made the Spanish debt auctions complicated at the moment.

The general secretary of the Treasury and Financial Policy, Carlos San Basilio, stressed in statements to Efe that investors trust the fundamentals of the Spanish economy.

"They value economic growth, above the main countries of the euro zone, the commitment to fiscal consolidation and the reduction of debt," he added.

In this regard, he explained that "the participation of international investors in the emissions has increased in the last year, especially of Asian investors."

In addition, there are investors who have also returned to buy Spanish debt and for Spain are "very valuable," he said.

It is "a multitude of small pension funds and insurers from European countries whose participation is very important for what it means for long-term stability and presence".

In the last syndicated auctions - in which the banks directly place the debt -, the demand of the investors broke a record and reached over 40,000 million.

In this type of auctions, the debt in the hands of Asian investors has also increased and in January they were the main buyers, with more than 11%, when just five years ago their presence was residual.

The ECB debt purchase program launched in 2015 explains, on the other hand, that the Bank of Spain appears as one of the main holders of Spanish debt after foreign investors, with 217,923 million, with a record of 22, 59%

In the case of Spanish banks, they accumulated 156,954 million at the end of 2018, 16.27% of the total; insurers, 9.83%; and mutual funds, 3.05%.

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