Confederation to increase funding in the money and capital market
Bern, 30.03.2021 - The Federal Finance Administration (FFA) now plans to issue bonds with a face value of around CHF 10 billion in 2021. The remaining funding requirements will be covered by increasing the volume of outstanding money market debt register claims.
The FFA has revised its plans as regards funding in the money and capital market. The latest decisions by the Federal Council and Parliament to cushion the economic impact of the COVID-19 pandemic result in higher funding requirements for the Confederation. The additional expenditure will be financed by increasing the volume of Confederation bonds and money market debt register claims issued. Relative to the original announcement of 1 December 2020, the FFA plans to issue additional bonds worth CHF 3.5 billion, bringing the total volume to a face value of CHF 10 billion (including the sale of own tranches). Gross issues, which include premia in addition to the face value, are likely to be approximately CHF 12 billion. The auction dates remain unchanged.
There is still considerable uncertainty about how the COVID-19 pandemic will evolve and thus about the development of the Confederation's receipts and expenditure. Consequently, the Confederation's remaining funding requirements are to be covered by increasing the volume of outstanding money market debt register claims based on the actual trend of liquidity.
In the spring session, Parliament approved supplementary credits of around CHF 14 billion to combat the COVID-19 pandemic. Together with the measures already approved in the 2021 budget, COVID-19 expenditure will thus rise to a total of 21 billion in 2021.
Address for enquiries
Philipp Rohr
Communications Officer
Federal Finance Administration
+41 58 465 16 06
philipp.rohr@efv.admin.ch
Publisher
Federal Finance Administration
http://www.efv.admin.ch
