On Friday 16 December, the DSTA presented its Outlook 2023. At that time, the borrowing requirement for 2023 was estimated at € 101.5 billion. Based on the actual money market position as at year-end 2022, the borrowing requirement for 2023 is now estimated at € 99.7 billion. This is € 1.8 billion lower than the previous estimate.
The estimated borrowing requirement is still surrounded by a high degree of uncertainty due to several factors that impact government finances, such as the cap on energy prices, projected inflation and a possible slowdown in economic growth.
|
Estimated borrowing requirement for 2023 |
Amount (in € bn) |
Difference compared to previous estimate (in € bn.) |
|
Capital market redemptions 2023 |
31.6 |
- |
|
Money market ultimo 2022 (excl. cash collateral) |
34.5 |
-1.8 |
|
Cash deficit 2023* |
33.6 |
- |
|
Consisting of: |
||
|
26.3 |
- |
|
7.3 |
- |
|
Total |
99.7 |
- 1.8 |
* A cash deficit is shown as a positive number because it increases the total borrowing requirement.
At the beginning of January 2023 the DSTA will communicate a first update of the borrowing requirement to reflect the net money market ultimo 2022.
Issuance in 2023 will continue to contribute to the DSTA’s goal to lengthen the average maturity of the debt, swap and cash portfolio towards a minimum of eight years in 2025. The DSTA intends to have the average maturity of the portfolio at the end of 2023 at a minimum level of 7.9 years.
Capital market issuance in 2023
The DSTA foresees issuances of DSLs on the capital market for an approximate amount of € 50 billion (nominal amount). If the funding need turns out to be higher or lower than currently estimated, the DSTA could increase or reduce the call on both the money and capital markets.