Flanders’ direct debt amounted to 33.075 billion euros at the end of 2024. That means an increase of 7.289 billion euros, or 28.27% in relative terms compared to the end of 2023.
Evolution of direct debt 2022-2024
The main reasons for the increase of 7.289 billion euros are:
- Direct financing of the Flemish Social Housing Company (VMSW), the Flemish Housing Fund (VWF) and Lantis: 3.190 billion euros
- Budget deficit (excluding recovery plan, construction costs Oosterweel and municipal debt takovers): 2.731 billion euros
- ‘Flemish Resilience’ recovery plan: 367.5 million euros
What is direct debt?
Direct debt refers to debt contracted by the Flemish government to cover a financing gap. It is created whenever the net financing requirement is negative. Direct debt also arises when the Government of Flanders takes over debts from a third party and explicitly recognises these by Decree as its own direct debt.
The direct financing of VWF, VMSW, School Invest and Lantis also has an impact on the direct debt because the Flemish government incurs additional debts for it. Since June 2015 the Flemish Community centralised the borrowing for these public institutions. In the past they issued their own debt with a guarantee of the Flemish Community.
How is the direct debt financed?
The EMTN programme clearly remains the most important debt instrument, with a relative share of 84.8% at the end of 2024. The graph below also shows the ever growing significance of sustainability bonds, with a relative share of 25.5%. Other important categories are the EU SURE loans and our BCP programme.
As of 31 December 2024
Cash, Debt and Guarantee Management Report
Read every detail in the most recent Cash, Debt and Guarantee Management Report.