The consolidated debt is the sum of the debt of all entities belonging to the consolidation circle of the Flemish Community.
In 2016, the debt increased by EUR 4,856 million in comparison to 2015. This is mainly due to the sixth state reform. Among other things, it was decided to shift the financing of the hospital infrastructure from the federal level to the community level. When you look at the consolidated debt without taking into account the changes of the sixth state reform, there is even a slight decline in comparison to 2015. The downward trend continues in 2017, with a decline of EUR 485.8 million in 2017 in comparison to 2016 and EUR 136.96 million in 2018 in comparison to 2017.
The decrease in 2018 is mainly due to a new decree on the optimization of the management of the financial assets of the entities of the Flemish Community. This decree entered into force in October last year and obliges certain institutions within the consolidation perimeter to invest their excess long-term liquidities in the Flemish Community. These institutions can also choose to invest their short term liquidities in the Flemish Community when they are unable to find better alternatives that more or less have the same rating as Flanders. At the end of 2018 Flanders got 1,1 billion euro through this new decree. Because of this Flanders had to attract less external financing so the increase of the direct debt is lower than expected and is even lower than the decrease of the debt of the several institutions and that’s why the consolidated debt decreased.
|in mio EUR||2016||2017||2018|
|VMSW (social housing)||6.282,50||6.112,95||5.955,01|
|VWF (social housing)||2.842,66||2.705,57||2.555,08|
|EKM's (social housing)||590,59||595,41||568,54|
|VIPA (including debt infrastructure hospitals and rest homes)||1.760,22||1.670,24||1.576,45|
|DBFM "Schools of Tomorow"||393,88||181,96||136,51|
For more details, please look at the Debt & Cash Report.