Council of Ministers authorises IGCP to issue up to 89 billion in debt
The resolution authorising the IGCP to issue public debt was approved this Wednesday.
The Treasury and Public Debt Management Agency – IGCP already has the okay from the Government to issue debt, to finance the State Budget for 2020, which has already entered into force. The decision was taken this Wednesday in the Council of Ministers, after an acceleration of the financing program was announced due to Covid-19 and when Portugal is in the market for a seven-year syndicated sale of Treasury bonds (T-Bonds).
“The Council of Ministers approved today [Wednesday], the resolution authorising the Treasury and Public Debt Management Agency – IGCP to issue public debt, under the limits and purposes established in the State Budget for 2020,” announced in a statement.
The resolution published in the Diário da República specifies that the agency led by Cristina Casalinho is authorised to issue a maximum of 89 billion, with T-Bonds the limit is 25 billion euros with maturity of up to 50 years.
Similarly, IGCP may also reinforce Treasury Bill (T-Bills) placements up to 20 billion euros. It can also issue up to 25 billion in floating public debt, that is, also the short-term to be amortised until the end of the State Budget period.
The Treasury announced this Tuesday that it will issue more debt to meet the increased needs generated by the Covid-19 pandemic. In the financing program released this Tuesday, the agency led by Cristina Casalinho points to an increase of 250 million euros in each auction of medium or long-term securities, besides a total of 1.3 billion in the short-term.
