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EU to raise 50 billion euros for recovery fund in Jan-June 2022

EU to raise 50 billion euros for recovery fund in Jan-June 2022
EU to raise 50 billion euros for recovery fund in Jan-June 2022   -   Copyright  Thomson Reuters 2021
By Reuters

– The European Union will raise 50 billion euros for its recovery fund by issuing long-term bonds in the first half of 2022, the European Commission said in a funding plan released on Tuesday.

The funding plan, which covers the January to June period, is based on the latest forecasts for member states’ payment needs from the recovery fund, the statement said.

The ratio of auctioned versus syndicated long-term issues will depend on market conditions and funding needs, the Commission said, but said it will “further develop the use of auctions as an issuance format.”

The longer-term bonds will continue to be complemented by short-term bills at auction, the Commission said.

It also expects to raise another 5.5 billion euros for other funding programmes, including the SURE unemployment scheme, the statement said.

The Commission, which announces six-month funding plans, will release issuance plans for the second half of 2022 next June.