Direct debt


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 2016, the direct debt was 4.640.53 million euro, an increase of 500 million euro. Besides the financing through the EMTN program, the Flemish Community issued also Belgian Commercial Paper for the amount of 250 million euro and issued for the first time Schuldschein for a limited amount of 37.5 million euro.

Furthermore the Flemish Community negotiated very favorable terms for the new cashier contract at the beginning of 2016. Therefore the current account was a frequently used short term finance instrument in 2016 and had a slightly negative balance of 739 million euro at the end of 2016.

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

Evolution of the Direct Debt (in million euro)


  2016 2017 2018
EMTN 3.516,50 4.836,50 5.631,50
Schuldschein 37,50 37,50 37,50
Bankloans Vismijn 2,46 2,25 2,03
Bankloans Munipical Holding 95,34 92,91 90,48
Bankloans Municipal loans 0,00 0,00 89,17
Ex-FRGE* * 5,88 0,00
Ground Lease** ** 26,16 25,17
Amoras* * 50,42 45,63
BCP 250,00 0,00 0,00
Current Account 738,73 262,27 76,92


4.640,53 5.313,89 5.998,39
Debt instruments 2017
debt instruments 2017b
Debt instruments 2018
debt 2018

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

pdf bestandKSW_def_2017_EN.pdf (1.16 MB)