Swiss govt plans 7 bln Sfr debt issuance 2011

ZURICH Dec 9 (Reuters) - Switzerland's federal government plans to issue 7 billion Swiss francs ($7.12 billion) worth of bonds next year, which will result in a reduction of debt outstanding. The amount of debt outstanding would be reduced by 0.6 billion francs, the Switzerland's Federal Finance Administration said on Thursday.

The federal government expects to post a surplus of some 1.4 billion Swiss francs this year as the economy is recovering much faster from recession than anticipated. In its original 2010 budget, the government had expected a 2 billion deficit.

The gross issuance including the placement of retained bonds was 4.1 billion francs in 2010, reducing the debt outstanding by 4.6 billion francs.

(reporting by Sven Egenter)