Nearly half of Spain’s debt obligations now held by foreign investors
Fueled by a low euro, the appetite for Spanish treasury notes is getting stronger
More than 49 percent of Spain’s outstanding liabilities are held by international investors, a figure not seen since 2011, according to new statistics released on Monday.
In other words, about one out of every two euros of debt issued by the Spanish treasury is owed to investors abroad.
During the sovereign debt crisis of 2012, much of the foreign money invested in the country flowed out, but it gradually started to return the following year.
The percentage of liabilities held by foreigners has yet to approach the record highs of 2011 and 2010
At the end of November, foreigners held €358.101 billion in bonds, bills and other obligations, representing 49.44 percent of the country’s total liabilities.
The appetite for Spanish bonds has meant lower borrowing costs. A cheaper euro has also helped Spain obtain new financing.
Foreign investment in Spanish bonds saw a recovery about a year ago, reaching higher levels while public debt kept growing. But in relative terms, the percentage of liabilities held by foreigners has not yet approached the record highs of 2011 (when non-residents controlled 50.4 percent of the total) and 2010 (when they held 54.8 percent).
2015 debt issue
On Tuesday, the Spanish Treasury announced it would issue a gross €239 billion in debt in 2015, slightly less than last year. Of this amount, nearly €142 billion would be in bonds and around €97 billion in treasury bills, which have a maturity of a year of less.
