Catalan Government to issue retail bonds again

Barcelona (ACN).- The Catalan Government will turn to citizens once again to raise money to pay off its debts. For the fourth time since 2010, the Government is planning to issue treasury bonds that can be bought by locals at profitable interest rates. The money will be used for repaying the interest of former bond auctions, which are due next May.

The exact interest rate or the amounts of money that the Government aims to raise are still unknown, although they would need at least €2 billion to meet the 2010 auction that now has to be repaid. The Catalan Government’s Deputy Finance Minister, Albert Carreras, said in an interview on Catalan radio that they expect to raise as much as possible.

In October, the Catalan Government issued €3.7 bilion on one and two year bonds by paying a 4.75% and 5.25% interest rate, respectively. “We are looking for liquidity”, said Carreras, who admitted that they need the money to pay for the previous auctions.