ECB bond buys increase fiscal space for German government Berlin seizes opportunity with record new borrowing (Adds details, background)
BERLIN, Dec 15 (Reuters) - Germany earned more than 7 billion euros ($8.51 billion) from issuing new bonds this year as negative interest yields pushed down Berlin’s overall debt servicing costs to record lows, a finance ministry document showed on Tuesday.
The windfall is mainly due to “historically very low interest rates”, Deputy Finance Minister Bettina Hagedorn wrote in a letter to opposition lawmaker Fabio De Masi following a parliamentary request.
The average yield on new German bonds issued until end of November was -0.56 percent, resulting in revenues of 7.07 billion euros, according to the finance ministry document.