Spain borrowing needs rise on banks and indebted regions

Spain's debt as a ratio of gross domestic product will reach 90.5 percent by end 2013 after hitting 85.3 percent of GDP by the end of this year, according to the document. “The notable increase in the debt-to-GDP ratio in 2012 and, to a lesser extent 2013, is due to a greater debt on the back of the economic crisis and the effect of state instruments on public accounts,“ the Treasury said in the document.

The instruments include the power deficit bond programme, FADE, the service provider fund for regional governments, Spain's part in aid granted to Ireland, Greece and Portugal and the recapitalisation loan for the country's banks, it said.

Prime Minister Mariano Rajoy has delayed any plea for aid, which would kick-start a European Central Bank plan to buy debt and ease financing costs, though this week has passed reforms and a budget plan in what many see is an effort to pre-empt the likely terms of a bailout. On Friday, an independent report showed Spanish banks will need a total of 59.3 billion euros (47.1 billion pounds) in extra capital to ride out a serious economic downturn. The budget details on Saturday showed Spain's debt ratio included 30 billion euros of the planned 100-billion-euro aid request for the country's banks.

The Treasury saw gross debt issuance requirements of 207.2 billion euros next year after budgeting in 2012 for gross issuance of 186.1 billion euros. Spain faces debt redemptions worth 159.2 billion euros next year, up slightly from 153.2 billion euros in 2012, the document showed.

While almost all the issuance would be in medium and long-term bonds and Treasury bills, the document noted the government would consider issuance of up to 6 billion euros in other currencies or debt instruments. Balearic investment falls: Page 9