Finland plans to sell a new benchmark bond in the first half of the year.
Finland is likely to continue its policy of two new euro- denominated benchmark bonds a year, as it seeks to fulfill a net funding need of 7.5 billion euros ($9.9 billion) in 2013, the Treasury in Helsinki said today in an e-mailed report. It said on Nov. 28 it would sell 5-year and 10-year bonds in euros next year. The Treasury said today Finland is set to arrange two to four tap auctions in 2013, with the first one in the first quarter.
Finland’s AAA rated government is borrowing to plug a budget gap of 1.5 percent of gross domestic product next year amid a recession that’s causing jobs to be lost and spending on benefits to balloon. The Finance Ministry yesterday cut its forecast for 2013 economic growth to 0.5 percent from 1 percent projected on Sept. 17.
Prime Minister Jyrki Katainen’s cabinet needs to decide on 1 billion euros worth of further balancing measures to reach its target of ending debt growth by 2015, Bank of Finland Governor Erkki Liikanen said on Dec. 13.