Dec. 12 (Bloomberg) -- Belgium projected its borrowing requirement for 2012 will fall 16 percent after this year’s need was bolstered by the rescue of Dexia Bank and a higher budget deficit.
Belgium expects its gross borrowing requirement to amount to 38.6 billion euros ($51.2 billion) next year, compared with the estimated borrowing need for 2011 of 46 billion euros, the country’s debt agency said today in an e-mailed statement.
The agency drew up the estimate assuming a 2012 cash budget deficit of 7.04 billion euros, compared with the estimated deficit for 2011 of 16.6 billion euros. The country plans to sell 26 billion euros of bonds in 2012, compared with 40.9 billion euros this year, the debt agency said. It sees three new issues of benchmark bonds, according to the statement.
Belgium expects to raise 6.03 billion euros selling retail bonds next year following the record sale of 5.73 billion euros of bonds to private investors this year, the agency said. Belgium had projected to raise 300 million euros in the sale.
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