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 2021 are 9.2 billion euro (without the internal redemptions). Also for the next years the needs on the capital market (without the internal redemptions) are high :  for 2022 6.4 billion euro and for 2023 4.3 billion euro.


Financing needs 2020-2023 (in million euro)

In million EUR

2020*

2021

2022

2023

VMSW

1,100.00

729.89

708.05

670.60

VWF

230.00

837.57

847.24

812.90

School Invest

14.06

83.75

10.94

0.00

Lantis (=BAM)

0.00

262.50

125.00

290.65

Deficit

6,154.70

4,244.07

2,800.90

2,588.74

Recovery plan

 

1,450.77

1,550.30

-242.37

ESA-8

 

598.05

251.00

150.00

Total new funding

7,498.76

8,206.60

6,293.43

4,270.52

Internal redemptions **

471.6

728.00

143.70

51.80

External redemptions

340.71

1,040.18

148.98

13.44

Total

8,311.07

9,974.78

6,586.11

4,335.76

*: realised numbers (preliminary figures)

**:  situation 31/12/2020. 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.

redemption schedule