Funding needs

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The Flemish government has decided that the financing of certain consolidated public institutions will be conducted by the central treasury of the Flemish Community. Before those public institutions raised their own debt directly through to the financial markets, in most cases with a guarantee of the Flemish Community. The central treasury will now borrow directly in its own name for the purposes of financing those consolidated public institutions. The first issues in the second half of 2015 showed a decrease in the interest rate by 20 to 30 base points compared to the guaranteed loans.

The transfer to the consolidated public institutions of these funds (no ESA-impact) is part of the budget. Redemptions (no ESA-impact) are also budgeted, both in the budget of the institutions as in the budget of the Flemish Community. The table below shows that the financing needs of the Flemish Community for the next years on the capital market without the internal redemptions will be between 1,8 billion euro and 2,2 billion euro each year. For 2020 these are the needs without taken into account COVID-19.


Financing needs 2019-2022 (in million euro)

 

In mio EUR

2019*

2020

2021

2022

VMSW

1,100.00

966.44

995.19

936.25

VWF

230.00

364.84

223.12

220.63

School Invest

46.00

0.00

138.15

36.98

Lantis (=BAM)

0.00

0.00

260.00

390.00

Deficit

0.00

433.00

 

 

Total new funding

1,376.00

1,764.28

1,616.46

1,583.86

Internal redemptions**

155.00

868.00

124.00

78.70

External redemptions

76.21

337.97

39.39

147.89

TOTAL

1,607.21

2,970.25

1,779.85

1,810.45

*: realised numbers

**: situation 31/12/2019. For the internal redemptions the assumption is made that these will be reinvested.

Redemption schedule

The chart below shows the redemptions of the direct debt over the next 40 years.  The Flemish Community has the intention to build a reference benchmark curve in the future.

redemtion schedule.jpg