Germany is starting to get into debt at an express pace
The Federal Financial Agency (Bundesrepublik Deutschland Finanzagentur - BDF), the central provider of state loan financing and debt management services, intends to issue additional bonds.
In line with the new strategy for financing public spending, the government has decided to increase the debt level in 2025 to €90.5 billion, which allows for the sale of bonds worth €15 billion in the fourth quarter.
Germany is seeing strong demand for government bonds, partly fueled by the budget crisis in France. Investors are currently looking for a safe haven for their money. Long-term bonds are particularly popular, says BDF CEO Tammo Diemer.
According to the adopted schedule, medium-term bonds worth EUR 10.5 billion and seven-year bonds worth EUR 3 billion will be offered in October.
One-year German bonds are yielding 1.95 percent, two-year bonds 2.02 percent, seven-year bonds 2.47 percent and ten-year bonds 2.7398 percent.
Chancellor Friedrich Merz announced an increase in the state's borrowing needs upon taking office. The funds raised will be allocated to defense and energy spending, as well as to stimulating the economy.
Journalist, graduate of political science at the Faculty of Law and Administration of the Jagiellonian University. Associated with the media for over 40 years. After graduating in 1982, he worked on the editorial staff of "Gazeta Krakowska" and "Kurier Polski." A member of the editorial team of "Przegląd Techniczny." He has published articles in "Student," "Przekrój," and "Życie Literackie." Since the economic and political transformation, he has been associated with Reuters as a correspondent in Krakow for over 20 years. For the next three years, he conducted practical classes with students at the Institute of Journalism, Media, and Social Communication of the Jagiellonian University. Since December 2021, he has joined the PTWP Group and works for the WNP.PL portal. His main professional interests include economics and politics at the global level and the participation of Polish business in this field, particularly companies listed on the Warsaw Stock Exchange. Winner of the "Ostra Pióra" award, granted for "spreading economic education" by the BCC, as well as the Golden Pear - a journalistic award of the Małopolska Branch of the Association of Journalists of the Republic of Poland.
wnp.pl
