Spain's debt 85pchigher than 2003

21st July 2004, Comments 0 comments

21 July 2004 MADRID - Spain's national debt has gone up 85 percent in the first six months of the year compared with the same period last year, the Treasury Secretary said Wednesday. Miguel Ángel Fernández Ordóñez said between January and June, the state debt stood at EUR 5.1 billion - 0.66 percent of the country's GNP.

21 July 2004
 
MADRID - Spain's national debt has gone up 85 percent in the first six months of the year compared with the same period last year, the Treasury Secretary said Wednesday.
 
Miguel Ángel Fernández Ordóñez said between January and June, the state debt stood at  EUR 5.1 billion - 0.66 percent of the country's GNP.

Ordóñez said the current debt showed an increase of 85 percent compared with the same period in 2003.

The figures were in line with the predictions of Treasury Minister Pedro Solbes who said last week that Spain's national debt would reach EUR 6 billion - or 0.78 percent of the country's GNP.

Solbes added that, taking into account the estimated debt for the rest of the year of 0.4 percent of the GNP, the country would close 2004 with a deficit of "approximately" 1 percent of the GNP.

The state debt was the result of lower expected income and higher spending.

State revenue was down EUR 48 million - or 2.6 percent less - while spending in January and February was EUR 53 million - or 2.1 percent more than the same period in 2003.

In terms of the state purse, Spain was EUR 6.7 billion in the red up to June - similar to the same period last year.  This was a figure for the actual financial picture up to June.

Solbes expects to finish the year with a debt of EUR 6.1 billion.

This was made up of EUR 2.7 billion to balance the nacional budget, EUR 2.5 billion clearing the debt of Andalucia, EUR 630 million on clearing debts run up by state broadcaster RTVE and EUR 260 million to underwrite a loan to debt-ridden Argentina.

If the government's estimates are correct, then Spain should close the year with debts of 1.2 percent of its GNP - or triple what it had originally expected.

 [Copyright EFE with Expatica]

Subject: Spanish news

 

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