Flanders’ direct debt amounted to 42.397 billion euros at the end of 2025. That means an increase of 9.321 billion euros, or 28.18% in relative terms compared to the end of 2024.
Evolution of direct debt 2023-2025
The main reasons for the increase of 9.321 billion euros are:
- Direct financing of the Flemish Social Housing Company (VMSW), the Flemish Housing Fund (VWF) and Lantis: 3.319 billion euros
- Budget deficit (excluding recovery plan and construction costs Oosterweel): 2.890 billion euros
- ‘Flemish Resilience’ recovery plan: 263.8 million euros
- Participation into Brussels Airport Company: 2.77 billion 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 89% at the end of 2025. The graph below also shows the ever growing significance of sustainability bonds, with a relative share of 23.9%. Other important categories are the EU SURE loans and our BCP programme.
As of 31 December 2025
Cash, Debt and Guarantee Management Report
Read every detail in the most recent Cash, Debt and Guarantee Management Report.