The Information of San Marino: “Unredeemable title, the State pays the first coupon more than 7.9 million euros”
An irredeemable title, the state pays the first coupon almost eight million euros
ANTONIO FABBRI – The resolution of January 24 with which the State pays the first coupon of the irredeemable bonds has been published. A coupon of 7,962,500 euros.
As will be remembered, the State, with the approval of the budget law, provided for the issuance of a package of irredeemable public debt securities for 450 million euros.
These bonds were exclusively intended for Cassa di Risparmio, which, depending on their possession, benefits from an annual coupon which is paid on 31 December of each year. Well, having been launched in 2020, the operation produced its first effects on 31 December 2021, so the Congress of State with Resolution number 20 of 24 January 2022, with a payment slightly postponed with respect to the deadline, authorized “expenditure up to the amount of € 7,962,500.00 (seven million nine hundred and sixty two thousand five hundred / 00) in favor of the Central Bank of the Republic of San Marino, as paying agent of article 3, paragraph 2, of Law 23 December 2020 n.223, for the payment of interest on the annual deferred coupon.
The expense is charged to the cap. 1-3-2424 “Citation of interest on the issue of Irredeemable public debt securities”, commitment no. 286 of the current financial year. This resolution is sent to the Public Finance Department – Central Control Service – for the purpose of legitimation“.
The modality of the perpetual or irredeemable title, which foresees that the state issues public debt to refinance Cassa di Risparmio which is wholly owned by the state, is a different modality from the previous so-called debt spreader, much contested.
But it must be said that the effect in substance is not so different: every year the money, little by little – assuming that almost eight million can be considered few – always the state must put it there to make up for the hole in Carisp.
Article taken from The information of San Marino, published in full after 10 pm