Business

Germany to borrow record sums on financial markets this year

Posted September 28, 2020 7:00 am

dpa, Berlin (TNS)

Sep. 28--FRANKFURT -- Germany is set to borrow record amounts on financial markets this year to deal with the economic effects of the novel coronavirus pandemic, the financial agency responsible for debt management said in Frankfurt on Monday.

Over the three months of the final quarter, German securities to the value of 50.5 billion euros (58.9 billion dollars) are to be offered, 6 billion euros more than previously planned.

For the year as a whole, the total is set to come in at 407 billion euros, the largest amount since the agency was established 20 years ago.

By contrast, the agency issued securities amounting to just 334 billion euros in 2009, the year following the collapse of Lehman Brothers and the ensuing global financial crisis.

The German government has passed large assistance programmes to fund furlough or short-time working payments to workers and to help companies and the self-employed to weather the crisis.

Given the status of the German national debt -- with the benchmark 10-year Bund on a negative yield -- no difficulties are expected in placing the new securities.

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Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html

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