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©Reuters. Brussels raises 11,000 million for the recovery fund and Ukraine
Brussels, Oct 12 (.).- The European Commission (EC) placed 11,000 million euros in a new debt issue of two bonds at 7 and 20 years that it will use to finance new disbursements from the recovery fund and a new tranche of credits of financial assistance to Ukraine.
Specifically, it raised 5,000 million through a bond maturing in August 2029 for which it registered a demand of 13,900 million, which resulted in a coupon of 1.625% and a yield in the secondary market of 3.026%, which is 88 points higher than the German bond and 48 points higher than the French bond with the same maturity.
On the other hand, Brussels placed 6,000 million with another bond that matures in November 2042 and whose demand rose to 26,000 million, resulting in a coupon of 3.375% and a yield in the secondary market of 3.404% (102 points more and 20 points more than the German and French bonds, respectively, with similar maturities).
“The funding of the EU (European Union) is a concrete expression of solidarity with Ukraine and with the recovery of the pandemic of the member states,” Budget Commissioner Johannes Hahn said in a statement.
Of the 11,000 million placed in the debt markets in this new issue, 2,000 million will be transferred to Ukraine in the form of credits as part of the first tranche of the 5,000 million macro-financial assistance package agreed by the Twenty-seven at the end of September.
In total, the Community Executive has already issued 86,600 million euros in 2022 to finance payments within the framework of the European recovery fund, a figure that amounts to 157,600 million since the start of debt issuances in June 2021.
Some 113,000 million have already been transferred to community partners in the form of grants or loans within the Recovery and Resilience Mechanism (MRR) and another 15,000 million have been used to finance programs such as the Cohesion Policy or the CAP.
In addition, Brussels has obtained some 4.2 billion euros in the debt markets in 2022 within the macro-financial assistance program to support Ukraine economically in the context of Russian aggression.
(More information on the European Union at euroefe.euractiv.es)
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