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NewsUpdate of funding needs and funding plan for 2023 as of September...

Update of funding needs and funding plan for 2023 as of September 4, 2023

Gross financing needs for 2023 are revised downwards by €2.0 billion to €49.07 billion, mainly due to a lower pre-financing estimate for 2024.

The Federal Debt Agency now plans to buy back OLOs maturing in 2024 for an amount of 0.30 billion euros, instead of 2.09 billion euros. This is due to the high price of short-term OLOs. In addition, other financing needs would only amount to 0.10 billion euros (compared to 0.31 billion euros).

In terms of financing, the Debt Agency reduced its planned OLO issues for 2023 by 2.90 billion euros, to 42.10 billion euros. The possibility of issuing up to 2.0 billion euros under the EMTN program is maintained for the time being.

Planned issuances of medium- and long-term government bonds, of which the Debt Agency has already issued 0.39 billion euros to date, have been revised upwards to 0.90 billion euros.

A new issue of a 1-year State note in December 2023 is possible, but is not mentioned in this updated financing plan. Following the great success of the issue of this product (21.90 billion euros), the outstanding balance of Treasury certificates should now decrease by 13.46 billion euros, whereas previously an increase of 1.00 billion euros was expected. The net change in other short-term debt and financial assets will also decrease, and would amount to -4.37 billion euros. The Treasury’s cash reserves will indeed increase structurally by some 9.0 billion euros.

Detailed information on future issues in 2023:

1) Regarding short-term instruments, in addition to the measures announced last Friday

– The Treasury certificate maturing on November 7, 2024 will not be offered at the auctions on November 7 and December 12, 2023.
– Until the end of the year, the reopening of 6-month Treasury certificates will not take place. This means that on October 31, 2023, the Treasury certificate maturing on May 9, 2024 will not be offered.
– Finally, the auctions of Treasury certificates scheduled for October 10 and December 12, 2023, the date on which the reopening of the 3-month certificate is scheduled, will be cancelled.

The modified calendar of Treasury certificate auctions is available on the website of the Federal Debt Agency.

2) Concerning long-term instruments

The planned total issuance of long-term instruments will be reduced from €47.25 billion to €45 billion.

The OLO auction of November 20, 2023 will be cancelled.

The Federal Debt Agency will maintain the last two ORI windows scheduled for 2023.

Attachment: Financing needs and updated 2023 financing plan

Originally published at Almouwatin.com

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