Finances: Financial Agency expects new record debt for 2027
To support economic growth, the federal government is likely to take on record-high debt in 2027, the financial agency predicts. This also has consequences for government bonds.
The Federal Financial Agency anticipates record debt accumulation for 2027. In the current year alone, the sale of government bonds to investors is projected to bring in 525.5 billion euros, the highest amount in history, according to the agency responsible for debt management in Frankfurt on Thursday. "This figure will also increase in 2027," said Managing Director Tammo Diemer to journalists.
One reason for this is the increasing maturity of debts: Only this year, old debts totaling 309 billion euros must be repaid to investors. "This figure will be higher," Diemer said when looking ahead to the coming year. This necessitates larger follow-up financing. In addition, the net borrowing of the federal budget is also growing somewhat, said the Managing Director of the Financial Agency.
The third reason for the expected record emission in 2027 is the increasing financing need from the special funds. The sum of these factors results in higher capital requirements. "Expansive phase" in fiscal policy "The Bund is in an expansive phase when it comes to its fiscal policy," emphasized Diemer. "It is of great importance to investors, to our creditors, what is done with these financial margins."
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