Update of the 2023 Borrowing Requirements and Funding Plan as of 4 September 2023

The 2023 Gross Borrowing Requirements are revised downwards by 2.0 billion euro to 49.07 billion euro, mainly as a result of a lower estimate of pre-funding for 2024.

The Belgian Debt Agency now expects to buy back OLOs maturing in 2024 for an amount of 0.30 billion euro, instead of 2.09 billion euro. This is due to the high price of the short-term OLOs. In addition, the other financing requirements would only amount to 0.10 billion euro (vs. 0.31 billion euro).

In terms of funding, the Debt Agency decreases its planned 2023 OLO issuance by 2.90 billion euro, to 42.10 billion euro. The possibility to issue up to 2.0 billion euro under the EMTN programme is maintained for now. 

The planned issuance of medium and long-term State Notes, of which the Debt Agency already issued 0.39 billion euro as of today, is revised upwards to 0.90 billion euro.

Renewed issuance of the 1-yr State Note in December 2023 is possible, but is not mentioned in this updated funding plan. As a result of the huge success of the  issuance of this product (21.90 billion euro), the outstanding amount of Treasury Certificates is now expected to decline by 13.46 billion euro, whereas previously an increase of 1.00 billion euro was expected. The net change in other short-term debt and financial assets will equally decline, and would amount to -4.37 billion euro. The Treasury’s cash reserves will structurally increase by some 9.0 billion euro.

Detailed information about the further issuance in 2023:

1)      With regard to short term instruments, on top of the measures announced last Friday

- The Treasury Certificate with maturity date 7 November 2024 will not be offered in the auctions of 7 November 2023 and 12 December 2023.
- Until the end of the year, the reopening of the 6-month Treasury Certificates will not take place. This means that on 31 October 2023 the Treasury Certificate with maturity 9 May 2024 will not be offered.
- Finally, the auctions of Treasury Certificates foreseen on 10 October 2023 and 12 December 2023, when the reopening of the 3-month Certificate is planned, will be cancelled.

The modified auction calendar of Treasury Certificate can be found on the website of the Belgian Debt Agency.

2)        With regard to long term instruments

The total planned issuance in long term instruments will be reduced from EUR 47.25 billion to EUR 45 billion.

The OLO auction of 20 November 2023 will be cancelled.

The Debt Agency will maintain the two last planned ORI windows of 2023.

Attachment: Updated 2023 Borrowing Requirements and Funding Plan