(Adds detail, comment by agency chief)
VIENNA, July 30 (Reuters) - Austria’s Federal Financing Agency has trimmed its bond issuance plans for 2018, adjusting for items including a 1 billion euro windfall from the sale of a bad bank’s assets, it said on Monday.
An update to the agency’s funding outlook for the year cut both the overall amount it plans to raise across all debt instruments as well as the amount in government bonds.
It now expects to sell 25-28 billion euros ($29-33 billion) of debt this year, compared to 27-30 billion euros announced in December, the update posted on its website showed. Its bond issuance plans were cut to 17-20 billion euros from 20-23 billion euros.
The head of the agency, Markus Stix, later said the two main reasons were a 1 billion euro cut in the new funding required by the government’s final budget approved in April, and a windfall of roughly the same size from the sale of bad bank Heta Asset Resolution’s assets that it received this month.
“We ... simply wanted to wait for both things to have happened,” Stix said, explaining why the outlook was updated once rather than twice.
The agency had expected to receive roughly 800 million euros from the ongoing wind-down of Heta’s assets, which is going towards paying back loans Austria provided to fund a settlement with Heta’s creditors. In early July, however, the agency received a payment of 1.8 billion euros, Stix said.
$1 = 0.8573 euros Reporting by Francois Murphy; Editing by Kevin Liffey