Funding plan 2021

The preliminary borrowing requirement for the DSTA in 2021 is estimated to amount to € 95.6 bn.

This estimate is surrounded by uncertainties concerning the development of the COVID-19 crisis. The DSTA will publish updates during 2021 as soon as new information regarding the funding need becomes available through regular Quarterly Outlooks and press releases.

Estimated borrowing requirement for 2021 (€ bn)

Capital market redemptions 2021

16.5

Money market ultimo 2020 (excl. cash collateral)

41.1

Cash deficit 2021*

37.9

Total

95.6

* A cash deficit is shown as a positive number because it increases the total borrowing requirement.

Note: Rounding differences explain the residual € 0.1 bn.

The first update of the borrowing requirement will be communicated in the beginning of January to reflect the cash realisations of 2020 which affect the net money market ultimo 2020 estimate.

Call on capital and money market

The DSTA continues to ensure liquidity across the curve by creating a balance between the call on the capital market and the money market in 2021. The DSTA has begun to gradually shift funding from the money market to the capital market and will continue to do so in 2021 and the coming years. This will contribute to the DSTA’s goal to lengthen the average maturity of the debt and swap portfolio towards eight years in the coming years.

Given the current borrowing requirement of € 95.6 bn, the DSTA foresees issuance of DSLs on the capital market for a total of € 50 bn in nominal terms. As is normal practice, fluctuations in the funding need will be absorbed by the call on the money market. Only in a scenario in which the funding need turns out significantly lower than currently estimated, the call on the capital market might be reduced. In case the funding need turns out higher than € 95.6 bn, the DSTA could increase the call on both the money- and capital market.