Germany made billions of euros on its own debt thanks to negative interest rates on its securities. This is recognized by the Secretary of State of the Ministry of Finance, Florian Toncar, to a parliamentarian of the Bundestag.
By issuing federal securities to finance the budget and special funds, “payments amounting to about € 5,855 million were collected,” according to Toncar’s letter in response to a question from Christian Goerke of the far-left Linke party.
Context // To cope with the consequences of the coronavirus pandemic, Germany has borrowed a record 483 billion euros in financial markets this year, about 20 percent more than in 2020, when the issuance reached its previous record.
The data // The average yield of the federal government bonds issued this year was minus 0.56 percent, according to Toncar. However, the auctions have been 1.7 times higher than the demand.