Belgium needs to borrow €51 billion in 2023

Belgium needs to borrow €51 billion in 2023
Credit: Belga

The Debt Agency wants Belgium to raise €51.07 billion in 2023, by issuing government bonds, for example. The amount is almost €2.6 billion more than the estimated €48.49 billion issued this year, the debt agency reported.

This is the so-called gross financing requirement of the federal government, the agency said. In other words, that estimated amount is needed, essentially, to finance the budget deficit and debt repayment, it explained.

The net financing requirement has been calculated at €27.54 billion, according to the government’s 2023 budget plans. This is over €8.5 billion higher than this year.

Another €21.13 billion will go towards repaying medium- and long-term debt, down nearly €7 billion from this year's figure.

The remaining €2.4 billion relates mainly to planned bond buybacks.

The Debt Agency plans to finance the €51.07 billion primarily with government bonds amounting to €45 billion, €0.87 billion more than the expected amount for 2022.

Eleven auctions of new debt are planned. The agency also plans to raise €250 million from individuals through government bonds.

This year these bonds have been reissued for the first time in three years, as interest rates are rising. Another placement expired a moment ago. It raised €48.6 million.

All in all, this year’s State bonds account for nearly €109 million.

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