Dutch State updates borrowing requirement for 2018
Following the publication of the Spring Memorandum by the Minister of Finance on 28 May 2018, the borrowing requirement for 2018 has been updated.
The total borrowing requirement for 2018 is now estimated at € 52.1 bn. The improvement in the expected cash surplus has decreased the borrowing requirement. However, due to buy-backs of DSLs maturing in 2019 and 2020 and the decrease in cash collateral, on balance the borrowing requirement increases by € 1.6 bn compared to the previous estimate of January.
|
Borrowing requirement 2018 |
Update (€ bn) |
Previous (€ bn) |
|
Capital market redemptions 2018 |
38.4 |
38.4 |
|
Money market ultimo 2017 |
15.7 |
15.7 |
|
Change in cash collateral in 2018 (Jan – April)* |
1.9 |
0.0 |
|
Cash surplus** |
-4.8 |
-3.6 |
|
Buy-backs DSLs 2019 and DSLs 2020 (Jan – April) |
0.9 |
0.0 |
|
Total borrowing requirement |
52.1 |
50.5 |
*a decrease (increase) in cash collateral is shown as a positive (negative) number because it increases (decreases) the total borrowing requirement.
**a cash surplus (deficit) is depicted as a negative (positive) number because it decreases (increases) the total borrowing requirement.
Fluctuations in the funding need will primarily be absorbed by changing the call on the money market. On the capital market, flexibility is possible within the communicated issuance range of € 23 – 29 bn.
|
Funding 2018 |
Update (€ bn) |
Previous (€ bn) |
|
Issuance of DSLs |
23 – 29 |
23 – 29 |
|
Money market ultimo 2018 (excl. cash collateral) |
23.1 – 29.1 |
21.5 – 27.5 |
|
Total funding |
52.1 |
50.5 |
The next update of the borrowing requirement will be provided in September, after the publication of the Budget Memorandum 2019. The issuance calendar for the third quarter will be published on 22 June.