The government presents an ambitious financing strategy for 2025.

In a recent press conference, the Minister of Economy, Trade, and Business, Carlos Cuerpo, presented the Treasury's financing strategy for the year 2025, which is characterized by a significant increase in financing needs, amounting to €60 billion. This increase responds to the urgent need to address the economic consequences arising from the DANA, a phenomenon that has severely impacted various regions of the country. Cuerpo emphasized that the Government is committed to providing the necessary support for the reconstruction and revitalization of the affected areas. The minister noted that, despite this increase, the financing strategy will remain based on prudence and flexibility, ensuring that the government can respond to any financial contingencies that may arise in the future. "We have a new financing strategy that is both prudent and flexible; this will allow us to address the emergencies that the Government is managing in response to the DANA," Cuerpo stated during his speech. Cuerpo highlighted that the robust economic growth of the country, combined with a cautious economic and financial policy, has facilitated strong access to capital markets. This situation has allowed for a reduction in interest costs and mitigated the impact of rising interest rates, generating a high level of confidence from both domestic and foreign investors in the Spanish economy and the issuance of Treasury debt. The financing strategy for 2025 includes a gross debt issuance that will amount to €278.448 billion, representing an increase of 7.4% compared to the previous year. This increase is largely due to a higher volume of maturities and a slight rise in net issuances. Cuerpo explained that most of these issuances will be carried out in the medium and long term, which will help maintain the average life of the portfolio at approximately eight years. The minister also indicated that €5 billion of these issuances are expected to be allocated to Treasury bills, with the aim of continuing to provide liquidity in a context where demand for these instruments remains high. "This high average maturity of the outstanding debt has helped mitigate the effects of rising interest rates, such that the average cost of debt has only increased by 57 basis points since its historical low in 2021," Cuerpo added. The Treasury's financing program for the next year will include a total of 48 ordinary auctions of bills, bonds, and obligations. Additionally, syndicated bids will be used again, allowing for further diversification of the investor base. The strategy also includes the issuance of green bonds as a structural component of the program, reinforcing the Government's commitment to sustainable finance. Regarding green bonds, the Treasury will continue to reopen the bond issued in 2021, with the intention of reaching a volume in the future that is comparable to other benchmarks on the agency's debt curve. This effort aims not only to diversify financing but also to contribute to the funding of projects focused on ecological transition. Furthermore, the Ministry of Economy announced that, as in previous years, significant disbursements from the Recovery Plan will continue in 2025, which will include substantial amounts of loans for the first time. These loans will be linked to the achievement of milestones and objectives agreed upon in the Plan, reflecting the Government's ongoing commitment to economic recovery and sustainable development. In summary, the Treasury's financing strategy for 2025 presents itself as an ambitious and flexible plan, designed to address both the repercussions of the DANA and to maintain stability and confidence in the Spanish economy. With a focus on sustainability and prudent debt management, the Government is preparing to face the challenges that lie ahead in the coming years.