Dutch State updates borrowing requirement 2017

News item | 01-06-2017 | 13:05

The total borrowing requirement for 2017 is now estimated at €56.8 bn. The increased expected cash surplus has decreased the borrowing requirement. However, this decrease is largely offset by buy-backs of DSLs maturing in 2018 and 2019 and a decrease in cash collateral. The current borrowing requirement is therefore slightly lower than the previous estimate.

Borrowing requirement 2017	Updated forecast (€ bn)	Previous forecast (€ bn)
Capital market redemptions 2017	42.5	42.5
Money market ultimo 2016	18.2	18.2
Change in cash collateral in 2017 (Jan – May)*	1.6	0.0
Cash surplus**	-7.6	-2.0
Buy-backs DSLs 2018 and DSLs 2019 (Jan – May)	2.1	0.0
Total borrowing requirement	56.8	58.7

*a decrease (increase) of cash collateral is shown as a positive (negative) number because it increases (decreases) the total borrowing requirement.

**a cash surplus (deficit) is shown as a negative (positive) number because it decreases (increases) the total borrowing requirement.

Fluctuations in the funding need are primarily absorbed by changing the call on the money market. On the capital market, flexibility is possible within the communicated issuance range of € 30-35 bn.

Funding 2017	Updated forecast (€ bn)	Previous forecast (€ bn)
Issuance of DSLs	30 – 35	30 – 35
Money market ultimo 2017 (excl. cash collateral)	21.8 – 26.8	23.7 – 28.7
Total funding	56.8	58.7

The next update of the borrowing requirement will be provided in September, after the publication of the Budget Memorandum 2018.