(Repeats story from late Monday)
* Slovaks see four new bonds, two new T-bills in 2010
* 2010 gross borrowing confirmed at 6-8 billion euros
(Adds new bonds, T-bills plan, write through)
By Martin Santa
BRATISLAVA, Dec 14 (Reuters) - The euro zone's newest member plans to place
four new government bonds next year, the Slovak Debt Agency (ARDAL) said on
Monday, confirming its gross borrowing plan of up to 8 billion euro in bonds and
T-bills.
The government of Prime Minister Robert Fico had to boost borrowing this
year, with ARDAL already pre-financing for 2010, as the heavily export-reliant
economy undergoes its deepest crisis since independence in 1993.
Slovakia, which adopted the euro zone single currency in January as only the
second ex-communist country after Slovenia, plans to open a new two-year
zero-coupon state bond with an issue size of 1.0 billion euros in January.
ARDAL said will also place 6-year, 10-year and 15-year fixed-rate coupon
state bonds, each worth 3.0 billion euros. For more see []. Timing
of the longer maturities' auctions will depend on market conditions and investor
sentiment, it added.
Tomas Kapusta, head of ARDAL's debt management department, told Reuters
earlier on Monday the new 10-year bond would start first as a syndicated bond
worth up to 1.5 billion euros by the end of the first quarter. []
Slovakia's outstanding liabilities are 3.1 billion euros in 2010,
accompanied by the expected budget deficit of 3.7 billion euros, according to
the finance ministry's debt agency.
The 70-billion euro economy, driven strongly by car and electronics
industries, has auctioned 4.208 billion euro in 24 domestic bond auctions this
year.
"How much we will auction next year depends on how the 2009 and 2010 fiscal
deficits will look like," Kapusta said.
The premium investors demand to hold Slovak 10-year government bond rather
than euro zone benchmark German Bunds stood at 108 basis points on Monday,
compared with Portugal's corresponding 78 basis points, or Italy's 81.5 basis
points. The next year's calendar also includes two new 364-day treasury bill
issuances, both of 2.0 billion euros.
For the full 2010 schedule please see [].
FIGHTING RISING FISCAL DEFICIT
Fico's government sees the fiscal deficit rising to 6.3 percent of gross
domestic product this year but it plans to cut the gap to 5.5 percent of GDP
next year and slash it to the EU limit of 3.0 percent by 2012.
Outgoing European Central Bank Governing Council member and Slovak central
bank Governor Ivan Sramko reiterated on Monday, while addressing a conference on
Slovakia's adoption of the euro, that faster consolidation was needed.
The European Commission gave Slovaks until 2013 to reduce the ballooning
fiscal gap, with the finance ministry accepting the deadline as reasonable.
Slovakia's economy is expected to contract by 5.6 to 5.7 percent this year,
erasing much of its 6.2 percent GDP growth from 2008, but it should emerge as
the EU's fastest growing member next year.
The central bank will present its updated GDP growth and inflation forecasts
on Tuesday. Sramko said he saw risks to the bank's current prediction on the
positive side.
(Editing by James Dalgleish)
