Spain Policy Measures (Feb-11)

8/7/2019 Spain Policy Measures (Feb-11)

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Labour market reform:

Fostering permanent and training contracts Clarifying grounds for objective dismissals

Internal flexibility at firm level: firms can opt out from conditions

imposed by sector-specific collective bargaining agreements

Labour market reform

Approved on July 2010

Source: Ministerio de Trabajo e Inmigracin.* Agreed wage increase, cumulative over the year.

Labour market developements since Labour m arket reform.Hiring, dismisals and w age developments (Year-on-year grow th rates)

May June July Aug Sep Oct Nov DecPermanent -0.8 -8.3 -13.8 -2.7 -4.9 -6.3 0.8 8.6

Fom ent o -5.4 -18 -17.3 41.5 35.1 56.1 80.5 136.5Temporary 7.3 2.7 0.7 7.7 3.4 -0.3 4.9 4.3

Tr a i n i n g 3.7 -7.4 -10.5 -2.7 14.5 20.6 46.0 -5.1Objective reasons -18.9 -12.3 6.4 18.8 18.0 11.6 23.7Disciplinary reasons -27.3 -26.3 -20.5 -12.8 -13.3 -26.8 -19.7

2009 2010-Q1 2010-Q2 2010-Q3 2010-Q4Collective agreements* 2.7 1.5 1.3 1.3 1.3Real wage 3.5 0.9 0.2 -1.8Real labour cost 3.8 0.0 -0.4 -2.2

Wagedevelopments

Post-reform periodPre-reform period

Hiring by type of contract

Dismissals


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8

Unemployment rate is still very high (20.3% in 2010-Q4) and

low ering it must be the focus of our effort Additional measures already implemented:

Private placement offices : effective interaction between

private and public employment agencies Active Labour Market Policies : Activation strategies,

enhancing individual employment orientation plans and formation

More to be done:

Collective bargaining : fostering collective agreements at the

firm level to increase flexibility

Additional labour market reforms

To be approved in March


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0.0

0.5

1.0

1.5

2.0

2.5

3.0

F rance Germany A ustralia Spain Canada United

Kingdom

United

States

1998 2003 2008

9

P roduct market reforms

According to OECD Spain has pursued a substantial reduction of productmarket regulation in the last decade

Nowadays Spain is well situated compared to other OECD countries

Pro duct Market Regulation Index(6:more restrictive, 0:less restrictive )

Source: OECD.


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10

Additional P roduct market reforms

Some pools of market rigidities still remain in the economy

P rofessional services

Red tape

Business creation

P ermits and licenses

Mos t analysts point to

Liberalizing access regulation, foster competition andmobility (Draft of the Professional Services Law bySpring 2011)

Reduction program: target reduction 30% by 2012

and 50% by 2020

Time to incorporate shortened to betw een 1 to 5 days(for mo st limited liability companies) from anaverage of 33. (approved)

Ambitious transpo sition of Service Directive andremoval of local licenses (approved)

w hich the government is already tackling


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11

Reforms are w orking

Fiscal consolidation

Future balanced grow th path

Funding and Debt Management


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12

Our commitment: achieving a fiscal deficit of 3% in 2013

More than 60% of total fiscal adjustment delivered in first 2 years

Deficit targets robust to: Implementation risks, through stronger control mechanisms

Negative growth surprises, as the targets are unconditional onmacroeconomic performance

Source: National Accounts and Ministerio de Economa y Hacienda.In brackets: net of internal transfers among Public Administration units .

GENERAL GOVERNM ENT BALANCE COMMI TMENTS BY UN IT (% of GDP)

2009 2010 2011 2012 2013General Government Budget Balance -11.1 -9.3 -6.0 -4.4 -3.0

- Central Government -9.3 -5.9 -2.3 -3.2 -2.1(-6.7) (-4.8)

- Autonomous Communities -2.0 -3.1 -3.3 -1.3 -1.1(-2.4) (-1.3)

- Local Governments -0.6 -0.6 -0.8 -0.3 -0.2(-0.4) (-0.3)

- Social Security 0.8 0.2 0.4 0.4 0.4


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13

I n 2010 General Government w ill deliver

According to National Accounts, budget deficit in 2010 for the CentralGovernment will be 5.1% . This gives a 0.8% saving to finance potential

deviations of other levels of government

Information on Social Security is partial, but if any deficit arises it will besmall:

Budget execution of the social security system ended up with a 0.2%surplus

Preliminary information on the public employment office shows a 0.3%deficit in National Account terms

Some regional governments might deviate from the initial objectives butoverall deficit should not be very distant from the target:

Until 2010-Q3 all regions but 2 (6% of GDP) had fulfilled thecommitment


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14

Monitoring Autonomous Communities All regions require authorisation of debt issuance depending on thecompliance of the previous year target and the presentation of a rebalancing

plan (table below) For the first time in 2010, the authorisation for new issuance was given inthree stages (initial 0.75% of GDP, additional 1.20% with proper budgetaryexecution in the first semester, final 0.45% with compliance)

OBJECTIVE OFBUDGETARYSTABILITY

DEBT I SSUES ANDFOREIGN

CURRENCY

LONG TERMOPERATIONS

SHORT TERMOPERATIONS

Compliance

( Madr id , La Rio ja , Gal ic ia )

Y es No No

Non-compliancew ith rebalancingplan(Res t )

Y es Yes No

Non-compliancewithoutrebalancing plan

Y es Yes Yes

Requiremen t of authorisation


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15

Monitoring Autonomous Communities

On November 24th, following execution of the first semester Murcia andCastilla la Mancha (6% of GDP) have been denied the second trancheof debt issuance until a reequilibrium plan was presented and approved

Both regions already presented plans to get back on track. Those plansmust be approved by the Ministry

Additional regions expect to end 2010 w ith a deficit higher than 2.4% ,in that case the third tranche of debt issuance (0.45% of GDP) is not goingto be authorised unless a plan is presented and approved

Plans must be consistent with the 1.3% deficit of 2011. Publicevaluations will be provided on February 28th


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16

Fiscal consolidation in 2011 is guaranteed by the budget

Central Government Budget 2011 :

Non financial expenditure diminishes by 7.9% Spending by ministerial department is 15.6% lower than in 2010

Personal Income Tax: increases in marginal tax rate

SMEs taxation modified to help small enterprises growing

Autonomous Communities Budget 2011 :

Budgets for most communities (except Catalua and Baleares).

On average non financial expenditure budget diminishes by 6.4%

Compensation of public employees budget diminishes by 5.1%

On average ordinary revenues budget decreased by 1.4%


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The consolidation process lies both on revenue increases and expenditurereductions

Overall in the two years, around 57% of the effort is made through lowerexpenditure

Breakdow n of fiscal consolidation in 2011(I )

Source: Ministerio de Economa y Hacienda.Data corresponds to estimations.

(% GDP ) (% in total) (% GDP ) (% in total)Revenue increase 1.2 66.7% 1.0 30.3%

Expenditure reduction 0.6 33.3% 2.3 69.7%Total 1.8 3.3

COMP OSI TION OF DEFI CI T REDUCTION MEASURES2010 2011


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Breakdow n of fiscal consolidation in 2011 (I I ) Around 50% of the increase in revenues in 2010 is the consequence of higher taxes; 90% in 2011

Indirect taxes represents more than 50% of the tax increases

Source: Ministerio de Economa y Hacienda.Data corresponds to estimations of the effects.

BREAKDOW N OF THE IN CREASE REVENUES OF GENERA L GOVERNM ENT

2010 2011

(% GDP) (% GDP)P ermanent measures adopted in 2010 Budget 0.6 0.4Increase in VAT rates 0.2 0.3Increase in excise duties 0.1 0.0Elimination of 400 income tax deduction 0.3 0.1

P ermanent measures adopted in 2011 Budget 0.0 0.1Excise duties increase 0.0 0.1Social contributions and other 0.0 0.0

Cyclical component and other (tax refunds) 0.6 0.5Total revenue increase 1.2 1.0


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The bulk of the adjustment lies on the measures adopted in May 2010 andthe reversion of transitory funds

Very few items increase in these years, in particular interest paymentsand pensions

Decomposing fiscal consolidation in 2011 (I I I )

Source: Ministerio de Economa y Hacienda.

Data corresponds to estimations of the effects.

BREAKDOWN OF THE EXPENDI TURE REDUCTI ONOF GENERAL GOVERNMENT

2010 2011(% GDP ) (% GDP)

Reversion of temporary measures adopted in 2009 and 2010 0.2 0.5Measures adopted in 2010 and 2011 budgets 0.8 0.8

Central Government Budget Bill 0.4 0.2Autonomous Communities' Budget Bills 0.4 0.6

Extraordinary measures adopted in 2010 1.0 1.0Inmediate Action Plan (January 2010) 0.5 0.0May Extraordinary Measures 0.5 1.0

Cyclical component and other -1.4 0.0Total expenditure reduction 0.6 2.3


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BREAKDOW N OF GENERAL GOVERNMENT BALAN CE % of GDP

2009 2010 2011Net effective borrow ing need -11.1 -9.3 -6.0I nterest P ayments 1.8 2.2 2.7P rimary Balance -9.4 -7.1 -3.4

Cyclical component - 1 .4 - 1 .7 - 1 .5 Structural Primary Balance -8.0 -5.4 -1.9

Transitory measures 2.0 0.7 0.1Structural Primary Balance excluding Transitory Meaures -5.9 -4.7 -1.8

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Consolidation path for the future

The cyclical component in 2011 adds 1.5% to the deficit

Once taken into account interest payments, the cyclical component andtransitory measures, the forecasted structural primary balance for 2011 is-1.8%



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Pension reform to w arranty fiscal sustainability

The Government presented the draft of the pension reform. Mainmeasures included were:

A gradual increase in the statutory retirement age from 65 to 67(retirement at 65 is only allowed for long contributing careers)

Additional restrictions to early retirement

Reinforcing the relation between contributions and benefits:

the pension is computed as a function of the last 25 years of career (an increase from 15)

An increase in the number of years worked (at least 37) to reacha full pension

Sustainability factor : Adjustment of the relevant parameters of thecurrent system to the changes in life expectancy every 5 years from

2027 onwards


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-2.5-2.0-1.5-1.0-0.50.00.51.01.5

2005 2006 2007 2008 2009 2010

SPAIN EURO AREA

-2.5-2.0-1.5-1.0-0.50.00.51.01.5

2005 2006 2007 2008 2009 2010

SPAIN EURO AREA

Source: Eurostat. Source: Eurostat.

GDP volume measures.Quarter-on-quarter grow th rates

GDP volume measures excluding construction.Quarter-on-quarter grow th rates

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W eak grow th for 2010 and 2011

The recovery of the economic activity in Spain was somewhat delayed andless intense than in the euro area

However, this is largely related to the adjustment of the housing sector


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0%

5%

10%

15%

20%

25%

30%

0% 2% 4% 6% 8%Stock of unsold new houses (% total stock)

Mediterranean and Madrid surroundingsOther provinces

P r i c e a d j u s

t m e n

24

Construction adjustment is being corrected Residential investment weighted 4.4% of GDP in 1995 and itincreased until 9.3% in 2006. I n 2010-Q3 this ratio is 4.6%

Adjustment is not over : y-o-y growth residential investment in 2010(-20.1%) and 2011 (-5.0%), taking 1.2 and 0.2 p.p. off GDP growth

But stock of unsold houses starts shrinking and prices are adjustingHousing: units started and finished


0

100

200

300

400

500

600

700

800

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

Starts Finished Housing stock

(Thousand units)

Real Price adjus tment by unso ld houses (per province)

Source: Ministerio de Fomento.


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0

50

100

150

200

250

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Total without construction and real estate

Construction & real estate services

0

2

4

6

8

10

12

U K

G e r m a n y

E u r o

a r e a

F r a n c e

S p a

i n

I t a

l y

Interest Interest & rent payments

25

Adjustment in Real Estate reduces aggregate leverage

Construction and real estate is intensive in credit

Compared to other countries, Spanish firms in those sectors were highlyleveraged. Other sectors do not present much d ifference


Corporate leverage: construction & otheractivities

(% of GVA)

Source: Eurostat.

I nterest and residential rent payments(% of disposable income)


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Other components of national demand are recovering

Private consumption is growing at an average of 1.2% (from -4.3% in2009) and investment in equipment is growing in average 2.3% (from -25%

in 2009) But the question is whether the economy is in the position of absorbing theconstruction adjustment

Source: National Statistics Institute, Spain and Ministerio de Economa y Hacienda.

Macroeconomic evolution (year-on-year growth rates, volume measures)2010 2011

Q1 Q2 Q3Final Consumption Expenditure 0.9 -2.3 -0.4 1.6 1.0 0.5 0.9

- Private consumption -0.6 -4.3 -0.3 2.2 1.4 0.5 1.8- Public Consumption 5.8 3.2 -0.5 0.1 -0.1 0.6 -1.6

Investment -4.8 -16.0 -10.4 -6.8 -7.0 -8.5 -1.5- Equipment -2.5 -24.8 -4.4 8.7 2.4 1.8 4.2- Construction -5.9 -11.9 -11.4 -11.4 -11.6 -11.4 -0.4- Other products -4.1 -16.2 -15.4 -11.2 -3.3 -11.7 -4.5

Exports -1.1 -11.6 9.1 11.6 8.7 9.3 6.4Imports -5.3 -17.8 2.3 9.3 3.9 3.3 2.9

Real GDP 0.9 -3.7 -1.4 0.0 0.2 -0.3 1.3

2008 2009 2010FORECAST MEHREAL DATA - NATIONAL ACCOUNTS


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60708090

100110120

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

Spain Germany France US

50

75

100

125

150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Spain Germany France United States

Remarkable resilience of market share in world merchandise exports andincrease in world service exports

Most developed economies decreased market share

Share in w orld merchandise exports(Index 2000=100)

Share in w orld service exports

(Index 2000=100)

27

Spanish firms are competitive

Source: International Monetary Fund. Source: World Trade Organisation.


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General competitiveness and internationalization

0%

1%

2%3%

4%

5%

6%

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Automotive productsAgricultural productsIron and steel products

Pharmaceutical productsChemical products

Machinery and transport equipmentClothingTelecomunications equipmentFuels and mining productsOffice and telecom equipmentElectronic data processing and office equipmentIntegrated circuits and electronic components

Source: World Trade Organisation.

Share in w orld exports by product

Export performance: is widespread and not attributable only to a handfulof sectors

Spanish exports are entering in new emerging markets : In 2009 (1999)78.8% (82.5%) went to OECD and 56.7% (60.2%) to the Euro Area.

Large increase in Spanish investment abroad (FDI) in 2009 weights 44.2%of Spanish GDP (20% in 90s).


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859095

100105110115

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

Spain Italy GermanyFrance Belgium

80

90

100

110

120

130

140

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Spain Italy Germany France

Between 2000 and 2008, Spain faced an increase in labour costs

relative to its European peers P rice competitiveness has been improving since 2009

ULCs Indexes relative to the Eurozone(Index 2000=100)

29

I n a particular period of increasing labour costs


Export prices indexes relat ive to theEurozone

(Index 1999=100)

Source: Banco de Espaa.


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-20-15-10

-5

05

1015

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

Germany Greece SpainFrance Netherlands Portugal

-30

-20

-10

0

10

20

2009 2010 Q1-Q3Germany Spain France Italy United Kingdom

Recent improvement in cost competitiveness hasfostered exports even further

Net borrowing of 11.4% of GDP in 2008 Q1 shrinks to 2.7% in 2010Q3. Partly attributed to construction adjustment

Current account deficit is adjusting due to a strong behaviour of exports . Exports are now reacting to downward pressure on domesticprices and labour costs moderation

Net lending/ borrow ing(%GDP seasonally and calendar adjusted) Export s of goods and services(year on year growth rates)

Source: Eurostat.30

Source: Eurostat.


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The combination of structural reforms , the correction of

macroeconomic imbalances and the existence of a competitive body o f firms will sustain a grow th path in the future

Despite low er grow th this year, projections of the Spanish economy

in the medium run are at least in line w ith those of the Euro Area

A sustained grow th path for the future

Sources: Ministerio de Economa y Hacienda, IMF, OECD, European Commission.* Potential output.

Comparison of grow th forecasts

MEH I MF OECD EC IMF OECD EC

2011 1.3 0.6 0.9 0.7 1.5 1.7 1.52012 1.5 1.8 1.7 1.8 2.0 1.82013 2.1 1.82014 2.1 1.8

2016-2025* 2.3 1.7

Spain Euro Area


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Highlights of debt management

Substantial reduction of net issuance

Lengthening of average life of debt outstanding

A solid and diversified investor base instrumental in difficult times

Transparency and predictability highly valued by investors


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Projected at 62.8% at end 2010, Spains debt to GDP ratio is 20% lower than theEuro area average

A lower debt burden provides resiliency in terms of interest payments and refinancingneeds (


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116.7

3.4

7 6 . 8 62.16 1 . 6

82.3

58.7

1 5 . 2 34.4

0

2040

60

80

100

120140

2009 2010 JanProjection

2010 Executed

Total net issuanceMedium- and long-term issuesLetras del Tesoro net issues

- 4 6 . 8 %

(-28.7%)

-9.3%

-5.1%

-5.9%

-10%-9%-8%-7%-6%

-5%-4%-3%-2%-1%0%

1%

J a n

F e b

M a r

A p r

M a y

J u n

J u l

A u g

S e p O

c t

N o v

D e c

2009 2010 Defic it target 2010

Substantial reduction in net issuance: austerity measures and a better-than-expectedperformance of tax revenues have reduced the Central Governments borrowing needs

Net issuance in 2010 (62.1 bn) 27% lower than initially projected (76.8 bn)

35

Funding P rogramme. 2009-2010(Net issuance in billion Euro )

Source: Direccin General del Tesoro y Poltica Financiera.

Effective N et Borrow ing(-)/ Lending(+)of Central Government 2009-2010

(% GDP, EDP )

Source: Ministerio de Economa y Hacienda. Provisional data.

Funding programme in perspective: 2010 vs 2009


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3.53 3.69

2.15 2.56

1.01.52.02.53.03.54.04.55.05.56.0

2 0

0 0

2 0

0 1

2 0

0 2

2 0

0 3

2 0

0 4

2 0

0 5

2 0

0 6

2 0

0 7

2 0

0 8

2 0

0 9

2 0

1 0

Cost of Debt outstanding Cost at issuance

Cost of debt outstanding and cost at issuance

(in percent, up to December 31st

2010)

36

P ositive funding execution snapshots

Support the normalization of market functioning through transparency andpredictability via auctions

On-going engagement with our investor base to update on the implementation of policy strategy and economic and budgetary developments


0

2

4

6

8

10

12

J a n

F e

b M a r

A p r

M a y

J u n

J u l

A u g

S e p

O c t

N o v

D e c

0.0

0.5

1.0

1.5

2.0

2.5

Euro bn Bid-to-cover ratioAvg. bid-to-cover

( bn.) (Bid-to-cover)

Auctions of Bono s and Obligaciones in 2010



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4.54 4.28

6.52 6.70

1

2

34

5

6

7

8

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

Duration Average life

37Sources: Direccin General del Tesoro y Poltica Financiera and Bloomberg.

Duration & Average Life to M aturity of thePortfolio

(Letras, Bonos and Obligaciones)(in years)

Average life to Maturity(T-Bills and medium and long-term euro-denominated debt)

(in years)

Lengthening of average life has enabled a prudentdebt management

Average life has increased thanks to a reduced issuance of T-Bills and focus onmedium- and long-term supply

Effort to achieve additional lengthening of average life has enabled prudent debtmanagement

7.016.77 6.70

6.18 6.145.90 5.76

5.0

5.5

6.0

6.5

7.0

7.5

F r a

n c e

I t a l y

S p a i n

G e r m a n y

P o r t u g a l

N e t h e r l a

n d s

B e l g i u m


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0%

5%

10%

15%

20%

25%

30%

Fr ance B enelux Ger many It aly Rest o fEU

Rest o fEurope

Asia,Af rica &others

America

2007 2008 2009 2010

38Source: Direccin General del Tesoro y Poltica Financiera.

Geographical distribution of non-resident holders of government bonds

(Term investment, % of non-resident portfolio)

A stable investor base

Government Bonds by Holder(Term investment, % of total portfolio)

Non-resident investors have been of instrumental importance throughout variousperiods of uncertainty in 2010

The geographical distribution of holdings of government bonds has remainedrelatively stable during the last two years


0%

10%20%

30%

40%

50%

60%

C

r e d i t

I n s

t i t u t i o n s

P e n s i o n ,

I n s u r a n c e

a n d

M u

t u a

l

F

u n

d s

H o u s e

h o

l d s

&

n o n -

f i n a n c i a

l s

S p a n

i s h

o

f f i c i a l

i n s t i t u t i o n s

N o n -

r e

s i d e n

t s

2007 2008 2009 2010


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39

The funding programme in 2011

Funding requirement down by 24% in accordance with frontloading of fiscal restraintmeasures

Funding programme does not factor in any potential proceeds from privatisationprocesses

Source: General State Budgets Bill 2011.

47.2-46.647.293.8

0.0

47.2588.0

5: Net increase in T-Bills

2: Redemptions of medium- and long-term bonds

6 = 5 + 3: Net change in outstanding debt7: Forecast Outstanding Central Government Debt at end 2011

Tesoro funding in 2011 (Billion Euro)

1: Funding requirem ent (=Net Issu ance)

4 = 2 + 3: Gross issuance o f medium and long-term bonds3: Net issuance medium- and long-term bonds

Funding P rogramme. 2010-2011(Net issuance in billion Euro )

62.1

47.2

58.7

47.2

3.4 00

10

20

30

40

50

60

70

2010 2011

Total net issuanceMedium- and long-term issues

Letras del Tesoro net issues

- 2 4 . 0 %

(-19.6%)

Source: General State Budgets Bill 2011.


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Outlines of the 2011 funding programmeMedium and long term: Increased flexibility in auction procedures: Monthly announcements + potential off-

the-run lines announced Friday prior to the auction Limit size per line: increased to 16.5 bn for longer lines

Short term: 3- and 6-month Letras auction 4 th Tuesday of every month

18-month and 12- month T-bills auction 3 rd Tuesday of every month

Other funding sources: Tesoro Pblico is open to additional foreign currency issuance Floating rate notes have provided in 2009 and 2010 an additional funding source Private placements Schuldschein loans

Projects:

European inflation-linked issues (HICP-ex tobacco)


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0

50

100

150200

250

J a n

F e b

M a r

A p r

M a y

J u n

J u l

A u g

S e p

O c t

N o v

D e c

0

2468

1012141618

J a n

F e b

M a r

A p r

M a y

J u n

J u l

A u g

S e p

O c t

N o v

D e c

Letras Bonds and long-term loans*

Monthly maturity structure(in billion Euros)

Source: Direccin General del Tesoro y Poltica Financiera. 41

Robust Treasury Management System Redemption dates of medium- and long-term bonds (principal and coupons) are setto coincide with biggest inflows of tax revenues

Liquidity lines with banks

Transparency: regular and publicly available information about budgetary execution,change in cash balances, non resident holdings,

Issuance schedule based on very conservative assumptions about budget execution

Excess liquidity is lent in the money market each day through a monthly auctionsince 2001

Average seasonal index of tax revenues of the Central Government 2008-2010

(Index 100=average)



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0

10

20

30

40

50

60

70

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 2 0

2 0 2 1

2 0 2 2

2 0 2 3

2 0 2 4

2 0 2 5

2 0 2 6

2 0 2 7

2 0 2 8

2 0 2 9

2 0 3 0

2 0 3 1

2 0 3 2

2 0 3 3

2 0 3 4

2 0 3 7

2 0 4 0

2 0 4 1

18.5% 17.4%

13.3%11.9%

9.0%

5%

10%

15%

20%

I t a

l y

B e

l g i u m

F r a n c e

S p a

i n

G e r m a n y

Redemptions in 2011, as of Jan uary 1 st 2011.(in % of 2010 GDP estimate, Euro-denominated bonds

and T-Bills)

Source: Direccin General del Tesoro y Poltica Financiera forSpain and Bloomberg for other countries.

42

Risk and refinancing measures


Maturity structure of medium- and long-term bonds.(in billion Euros)

Refinancing risk remains subdued due to lengthening of average life

Redemptions of Euro-denominated debt remain well in line with those of peers


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More and updated info on the Spanish economy

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Thank you for your attentionJos Manuel Campa Secretary of State of Economy

Soledad Nez General Direc tor of the Treasury and Financial [email protected]

Ignacio Fernndez-Palome ro Deputy Director for Funding and Debt [email protected]

Jos Ramn Martnez [email protected]

Rosa [email protected]

Leandro [email protected]

Pablo de [email protected]

Ignacio [email protected]

Roco [email protected]

Carla [email protected]

For more inform ation please contact:Phone: 34 91 209 95 29/30/31/32 - Fax:34 91 209 97 10

Reuters: TESOROBloomberg: TESO

Internet: www.tesoro.esFor more inform ation on recent developments:

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Documents

Spain Policy Measures (Feb-11)