Sunday, November 16, 2008

A German bank lends to the Board EUR 15 million through an issue of public debt

It's called Bayerische Hypo-und Vereinsband AG and just give the Castilla y Leon 15 million euros through an issue of 50,000 bonds of public debt. Councilor for Finance, Pilar del Olmo, has closed an agreement with the managers of the German bank to increase liquidity in the Autonomous Executive with an emission of public debt to variable rate by which the community paid to the lender the Euribor plus 0.25%. The conditions of this credit that mark Castilla y Leon all the interest paid on November 14 of each year as long as the debt alive.
The 15 million euros held by the regional coffers since yesterday morning and the Ministry of Finance has calculated as the maximum expenditure of this operation, in interest, 825,000 for each of the next three years. The bond will expire on November 14 2011.
This debt issuance is part of the game allowed by the budget of the Board for 2008 that approved the cuts last December. The accounts that runs the autonomous government at this time to allow the Ministry of Finance to look into the financial markets, either through debt issuance or other transactions, up from 138.53 million euros to cover investment.
Interest payments
The department headed by Pilar del Olmo has authorized the payment of 21.74 million euros destined to cover the interests of several contracts signed issuance of public debt in the years 2000 to 2004 inclusive. The total debt of these five alive bond issues that the Board maintains with financial institutions amounted to 461.14 million euros.