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Spain’s Debt to Rise to Record 79.8%; Bond Sales to Decline

Spain’s public debt will rise to a record this year as it sells almost 37 billion euros ($49 billion) of bonds to finance a budget deficit that was nearly three times the euro-area limit last year.

Total borrowing will reach 79.8 percent of gross domestic product as the country breaches the European Union’s deficit rules for a fifth year. That’s the highest since before the country’s return to democracy in 1978 and up from 68.5 percent last year, according to the 2012 budget that the government presented to Parliament today in Madrid.