The government plans to tap the bond market at least one more time this year, most likely by the end of October, despite the fact that cash and cash equivalent reserves are more than enough.
Cash reserves are currently about €34.5 billion, compared to €37.5 billion at the start of the coronavirus pandemic – this, despite the fact that the government has spent about €14 billion to counter the effects of the pandemic. But new security issues brought in €7.5 billion and the extension of current issues another €3 billion.
A further €1 billion came from European Union structural funds and €700 million from the return of profits from the Securities and Markets bond-buying program (SMP) and the Agreement on Net Financial Assets (ANFA).
The government will need to spend a further €4 billion, including €1.1 billion on partially restoring pension cuts. Expected revenue will come from more EU structural funds (€1 billion), the first installment of EU aid from the special unemployment fund SURE (about €1 billion), and a further installment from SMP and ANFA profits (€700 million). Extending an old bond issue is expected to bring in €1.5-2.5 billion.