Brussels (Brussels Morning) The EU Commission has confirmed plans to issue at least 62.9 billion euro worth of bonds in the first half of 2021 under existing borrowing programmes, according to a press statement released today, Tuesday.
Between 30 billion and 35 billion euro is to be raised in the first quarter of 2021 followed by between 25 billion and 30 billion in the next quarter.
The money will go towards the SURE instrument, the European Financial Stabilisation Mechanism (EFSM) and the Macro-Financial Assistance (MFA) programme.
The Commission notes it will continue preparing for the first issuance under the recovery instrument NextGenerationEU, predicting it will start borrowing using this tool in mid-2021, once legislative processes are wrapped up.
Johannes Hahn, EU Commissioner for Budget and Administration, recalled how the EC raised close to 40 billion euro under the SURE instrument between mid-October and mid-November.
“Our debut as a high-volume issuer capable of ensuring favourable conditions and passing them on to our Member States has been a vote of confidence in the EU as an issuer and a borrower,” Hahn said.
“This has made us confident for the near future, when we will be rising to the challenge of successfully completing the implementation of SURE and launching NextGenerationEU,” he observed.
The Commission expects to borrow 50.8 billion euro under SURE in the first half of 2021, followed by EFSM with 9.75 billion and MFA with 2.35 billion. It notes that further issuance under the SURE programme could continue in 2021 up to the allowable maximum of 100 billion euro, depending on member state demand.The EFSM borrowing is aimed at refinancing maturing bonds in the first half of the next year, with 46.8 billion euro of outstanding borrowing under the EFSM. The MFA borrowing will help the EU provide financial assistance to enlargement and neighbourhood partners aimed at cushioning the negative economic impact of the coronavirus crisis.