The DSTA expects a cash deficit for 2023 that is €11.5 billion lower than previously communicated, causing a decrease in the funding need to €74.9 billion. The change in the cash deficit is caused by many factors. Examples of these are variations in tax income and social security contributions, lower than expected spending on the energy price cap and underspending. (i.e. the government being unable to carry out all planned expenditures). The call on the capital market is lowered by approximately €5 billion to at least €46 billion in nominal terms.
Funding need in 2023
|
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 |
- |
|
Cash deficit 2023* |
8.8* |
-11.5 |
|
Total |
74.9 |
- 11.5 |
Call on the capital and money markets in 2023
Given the updated estimated borrowing requirement, the DSTA will lower the call on the capital market by approximately €5 billion to at least €46 billion in nominal terms.
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.
*A cash deficit is shown as a positive number because it increases the total borrowing requirement.