The Treasury will resume its liquidity auctions as of next January, through which it will be able to place its cash surpluses on the market and obtain a higher financial yield.

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The Treasury

This operation is in line with that being carried out by other euro area treasuries and was standard Treasury practice from 2001 to 2017.

Today, rising interest rates are once again making active management of the State’s cash holdings attractive and will enable the Treasury to better manage public resources.

To this end, the Treasury has updated the regulatory framework for these operations. Surplus liquidity balances will be placed on the market through auctions in which financial institutions will participate, and at the end of the established period, they will have to return the funds received with the agreed interest.

To this end, the Treasury has updated the regulatory framework for these operations. Surplus liquidity balances will be placed on the market through auctions in which financial institutions will participate, and at the end of the established period, they will have to return the funds received with the agreed interest.

The Resolution published today in the Official State Gazette establishes the objective criteria that determine the participation of financial institutions in the auctions, to guarantee a sufficient number of participants to place the balances and with sufficient size and solvency to minimise counterparty risks. With these objectives in mind, financial institutions that currently play a significant role in the State’s treasury, either as creators of State Debt or as entities that collaborate with the Tax Agency to a certain extent, may take part in liquidity auctions.