Direct debt

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Direct debt refers to the debt that the Flemish administration has incurred in order to cover a net borrowing requirement. This means if the net financing requirements are negative, the Flemish administration has to borrow in order to be able to pay all its expenses.

Direct debt can also be incurred because the Flemish administration takes over the debt of a third party and explicitly recognizes this, through a decree, as its own, direct debt.

Finally direct debt can also exist because the Flemish administration borrows for the consolidated public institutions. Since June 2015 the Flemish Community centralized the borrowing for some public institutions (social housing companies), which in the past issued their own debt with the guarantee of the Flemish Community.

At the end of 2017, the direct debt was 5.313.89 million euro, an increase of 700 million euro. 91,2% of the financing was done through the EMTN program. An increase of 15.2 % in comparison with 2016.

In 2018 the direct debt increased to 6 billion euro. As shown in the pie chart below, the EMTN program remains the most important financial instrument. No less than 93,64% of the financing was  through the EMTN program. A small increase in comparison to 2017.

In July 2018 the Flemish Community took over soms bank loans of municipalities that voluntary merged. At the end of 2018 the outstanding debt of these loans was 89,2 million euro. The BCP and current account were largely decreased in 2018 mainly due to the positive budget results and the new decree on the optimization of the financial assets of the entities of the Flemish Community that entered into force in October 2018.

In 2019 the direct debt increased with 804 million euro to 6.8 billion euro. 93,1% was financed through the EMTN-program.


Evolution of the Direct Debt (in million euro)

 

2017

2018

2019

EMTN

4,836.50

5,631.50

6,331.50

Schuldschein

37.50

37.50

37.50

Bankloans Vismijn

2.25

2.03

1.79

Bankloans Municipal Holding

92.91

90.48

82.30

Bankloans Municipal Loans

0.00

89.17

77.38

Ex-FRGE

5.88

0.00

0.00

Ground Lease

26.16

25.17

23.80

Amoras

50.42

45.63

40.49

BCP

0.00

0.00

0.00

Current Account

262.27

76.92

207.51

Total Direct Debt

5,313.89

5,998.39

6,802.26

 

Debt instruments 2018
debt instruments 2018.jpg
Debt instruments 2019
debt instruments 2019

More information about the direct debt can be found in the Cash&Debt Report.

pdf bestandDebt Report 2019 .pdf (1.16 MB)