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Germany to issue less debt than planned in Q3

[BERLIN] Germany plans to issue 5 billion euros (S$7.53 billion) less debt in the third quarter than originally planned as a surge in tax revenues means the government does not need to borrow as much money to fulfill its budget, the German finance agency said.

The debt agency said on Tuesday that it would issue 2 billion euros less in two-year Schatz notes than it had originally planned in December.

It also said it would cancel two planned new issues of 12-month Bubills that would have matured in August and September 2016.

The finance agency said it was reducing the overall amount of debt it would issue in 2015 to 180.5 billion euros from its plan in December to issue 185.5 billion euros, excluding inflation-linked bonds.

The German federal government's tax revenues rose by 8.5 per cent to 101 billion euros between January and May compared with the same period a year earlier.

Germany, which met its goal of a balanced budget one year ahead of schedule in 2014, has seen tax revenues climb as workers benefit from high employment and rising wages.

In May the government raised its tax revenue estimates for this year by about 1 per cent in May.