Government; debt guarantees, off-balance PPP, non-performing loans

Government; debt guarantees, off-balance PPP, non-performing loans

Sectors Periods Value in million euros Debt guarantees One-off and standardised guarantees (million euros) Value in million euros Debt guarantees One-off guarantees Total one-off guarantees (million euros) Value in million euros Debt guarantees One-off guarantees Public non-financial corporations (million euros) Value in million euros Debt guarantees One-off guarantees Public financial corporations (million euros) Value in million euros Debt guarantees One-off guarantees Private financial corporations (million euros) Value in million euros Debt guarantees One-off guarantees Other institutions (million euros) Value in million euros Debt guarantees Standardised guarantees (million euros) Value in million euros Adjusted capital value off balance PPP (million euros) Value in million euros Non-performing loans (million euros) Value in % of GDP Debt guarantees One-off and standardised guarantees (% of GDP) Value in % of GDP Debt guarantees One-off guarantees Total one-off guarantees (% of GDP) Value in % of GDP Debt guarantees One-off guarantees Public non-financial corporations (% of GDP) Value in % of GDP Debt guarantees One-off guarantees Public financial corporations (% of GDP) Value in % of GDP Debt guarantees One-off guarantees Private financial corporations (% of GDP) Value in % of GDP Debt guarantees One-off guarantees Other institutions (% of GDP) Value in % of GDP Debt guarantees Standardised guarantees (% of GDP) Value in % of GDP Adjusted capital value off balance PPP (% of GDP) Value in % of GDP Non-performing loans (% of GDP)
General government sector 2010 64,697 64,697 3,251 9,950 30,013 21,483 0 0 326 10.1 10.1 0.5 1.6 4.7 3.4 0.0 0.0 0.1
General government sector 2015 25,923 25,923 3,565 0 0 22,358 0 0 3,505 3.8 3.8 0.5 0.0 0.0 3.2 0.0 0.0 0.5
General government sector 2018 24,799 24,799 2,768 0 0 22,031 0 0 281 3.2 3.2 0.4 0.0 0.0 2.8 0.0 0.0 0.0
General government sector 2019 24,573 24,573 2,648 0 0 21,925 0 0 290 3.0 3.0 0.3 0.0 0.0 2.7 0.0 0.0 0.0
General government sector 2020* 47,357 47,357 2,391 0 0 44,966 0 0 420 5.9 5.9 0.3 0.0 0.0 5.6 0.0 0.0 0.1
Central government 2010 58,946 58,946 295 9,950 30,013 18,688 0 0 52 9.2 9.2 0.0 1.6 4.7 2.9 0.0 0.0 0.0
Central government 2015 20,123 20,123 246 0 0 19,877 0 0 3,206 2.9 2.9 0.0 0.0 0.0 2.9 0.0 0.0 0.5
Central government 2018 20,528 20,528 201 0 0 20,327 0 0 26 2.7 2.7 0.0 0.0 0.0 2.6 0.0 0.0 0.0
Central government 2019 20,567 20,567 186 0 0 20,381 0 0 66 2.5 2.5 0.0 0.0 0.0 2.5 0.0 0.0 0.0
Central government 2020* 43,939 43,939 174 0 0 43,765 0 0 72 5.5 5.5 0.0 0.0 0.0 5.5 0.0 0.0 0.0
Local government 2010 5,751 5,751 2,956 0 0 2,795 0 0 274 0.9 0.9 0.5 0.0 0.0 0.4 0.0 0.0 0.0
Local government 2015 5,800 5,800 3,319 0 0 2,481 0 0 299 0.8 0.8 0.5 0.0 0.0 0.4 0.0 0.0 0.0
Local government 2018 4,271 4,271 2,567 0 0 1,704 0 0 255 0.6 0.6 0.3 0.0 0.0 0.2 0.0 0.0 0.0
Local government 2019 4,006 4,006 2,462 0 0 1,544 0 0 224 0.5 0.5 0.3 0.0 0.0 0.2 0.0 0.0 0.0
Local government 2020* 3,418 3,418 2,217 0 0 1,201 0 0 348 0.4 0.4 0.3 0.0 0.0 0.2 0.0 0.0 0.0
Source: CBS.
Explanation of symbols

Table description


This table comprises figures related to debt guarantees provided by the general government sector, adjusted capital value of off-balance sheet public private partnerships (PPP), and non-performing loans. The figures are also available per government subsector, and are taken from end-of-year balance sheets.
Publication of this table meets one of the requirements of Directive EU 2011/85, part of the Enhanced Economic Governance package ("Sixpack") adopted by the European Council in 2011.

Data available from: situation on 31 December 2010.

Status of the figures:
The figures for 2020 are provisional. The figures for the earlier years are final.

Changes as of 29 October 2021:
Provisional figures for 2020 have been published.
The figures for 2019 have become final.
Due to a processing error data on non-performing loans of local government for 2018 (5 million euros) and 2019 (4 million euros) have been slightly revised.

When will new figures be published?
New provisional figures for the previous year will be published in October. Previous provisional figures will then become definite. More information on the revision policy of National Accounts can be found under "Relevant articles" under paragraph 3.

Description topics

Value in million euros
Debt guarantees
A debt guarantee is an arrangement in which a guarantor agrees to pay a creditor if a debtor defaults.

This table presents debt guarantees provided by the government. These include:
- Guarantees on interbank loans as a result of the financial crisis.
- Export credit guarantees.
- Guarantee arrangements for specific sectors.
- Guarantees provided to individual institutions.

The data do not include:
- Government guarantees issued within the guarantee mechanism under the Framework Agreement of the European Financial Stability Facility (EFSF)
- Guarantees provided for the 'European Financial Stabilisation Mechanism' (ESFM) en the 'European Stability Mechanism' (ESM).
- Derivative-type guarantees, i.e. guarantees that meet the definition of a financial derivative
- Deposit insurance guarantees and comparable schemes
- Government guarantees issued on events whose occurrence is very difficult to cover via commercial insurance (earthquakes, large-scale flooding, nuclear accidents, certain art
exhibitions, etc.).
One-off and standardised guarantees
The sum of one-off and standardised guarantees.
One-off guarantees
A one-off guarantee is defined as individual, and guarantors are not able to make a reliable estimate of the risk of calls.
Total one-off guarantees
A one-off guarantee is defined as individual, and guarantors are not able to make a reliable estimate of the risk of calls.
Public non-financial corporations
Public non-financial corporations are all non-financial corporations, quasi-corporations and non-profit institutions recognised as independent legal entities that are market producers and are subject to control by government units.
Public financial corporations
Public financial corporations are all institutional units whose principal activity is the production of financial services which are subject to control by government units.
Private financial corporations
Private financial corporations are all institutional units whose principal activity is the production of financial services which are not subject to control by government units.
Other institutions
All institutional units which are not financial corporations and/or a public corporations.
Standardised guarantees
Standardised guarantees are guarantees that are issued in large numbers, usually for fairly small amounts, along identical lines. It is not possible to estimate precisely the risk of default for each loan, but it is possible to estimate how many, out of a large number of such loans, will de defaulted on.
Adjusted capital value off balance PPP
Adjusted capital value of off balance PPP.

The adjusted capital value of off-balance sheet public private partnerships (PPP).

The adjusted capital value is the initial contractual capital value, progressively reduced over time on the basis of estimates or actual data (in order to reflect better the GFCF and debt impact if the government were to take over the assets during the contract period).

Public-private partnerships (PPPs) are complex, long-term contracts between two units, one of which is normally a corporation (or a group of corporations, private or public) called the operator or partner, and the other normally a government unit called the grantor. PPPs entail significant capital expenditure to create or renovate fixed assets by the corporation, which then operates and manages the assets to produce and deliver services either to the government unit or to the general public on behalf of the government unit.

In a PPP contract, the corporation acquires the fixed assets and is the legal owner of these assets during the contract period, in some cases with the backing of the government. The contract often requires the assets to meet the design, quality, and capacity specified by government, to be used in the manner specified by government to produce the services required by the contract, and to be maintained in accordance with standards defined by government.
As with leases, the economic owner of the assets in a PPP is determined by assessing which unit bears the majority of the risks and which unit is expected to receive a majority of the rewards of the assets. The asset, and thus the gross fixed capital formation, will be allocated to this unit. If the majority of the risk is for the partner, then the assets are on the partner’s balance sheet and off the balance of the government sheets. If the majority of the risk is for the government, then assets are imputed on the balance sheet of the government’s account together with an imputed debt for the government. The main risk and reward elements to be assessed are:
(a) construction risk: costs overruns, additional costs resulting from late delivery, not meeting specifications or building codes, and environmental and other risks requiring payments to third parties;
(b) availability risk: additional costs such as maintenance and financing, and incurrence of penalties because volume or quality of the services do not meet the standards specified in the contract;
(c) demand risk: demand for the services is higher or lower than expected;
(d) residual value and obsolescence risk: the asset will be worth less than its expected value at the end of the contract and the degree to which the government has an option to acquire the assets;
(e) the existence of grantor financing or granting guarantees, or of advantageous termination clauses, notably on termination events at the initiative of the operator.
Non-performing loans
Loans that have not been serviced for some time.

A loan is non-performing if (a) payments of interest or principal are 90 days or more past their due date; (b) interest payable of 90 days or more has been capitalised, refinanced, or delayed by agreement; or (c) payments are less than 90 days overdue, but there are other good reasons (e.g. debtor filing for bankruptcy) to doubt that payments will be made in full.
Value in % of GDP
Debt guarantees
A debt guarantee is an arrangement in which a guarantor agrees to pay a creditor if a debtor defaults.

This table presents debt guarantees provided by the government. These include:
- Guarantees on interbank loans as a result of the financial crisis.
- Export credit guarantees.
- Guarantee arrangements for specific sectors.
- Guarantees provided to individual institutions.

The data do not include:
- Government guarantees issued within the guarantee mechanism under the Framework Agreement of the European Financial Stability Facility (EFSF)
- Guarantees provided for the 'European Financial Stabilisation Mechanism' (ESFM) en the 'European Stability Mechanism' (ESM).
- Derivative-type guarantees, i.e. guarantees that meet the definition of a financial derivative
- Deposit insurance guarantees and comparable schemes
- Government guarantees issued on events whose occurrence is very difficult to cover via commercial insurance (earthquakes, large-scale flooding, nuclear accidents, certain art
exhibitions, etc.).
One-off and standardised guarantees
The sum of one-off and standardised guarantees.
One-off guarantees
A one-off guarantee is defined as individual, and guarantors are not able to make a reliable estimate of the risk of calls.
Total one-off guarantees
A one-off guarantee is defined as individual, and guarantors are not able to make a reliable estimate of the risk of calls.
Public non-financial corporations
Public non-financial corporations are all non-financial corporations, quasi-corporations and non-profit institutions recognised as independent legal entities that are market producers and are subject to control by government units.
Public financial corporations
Public financial corporations are all institutional units whose principal activity is the production of financial services which are subject to control by government units.
Private financial corporations
Private financial corporations are all institutional units whose principal activity is the production of financial services which are not subject to control by government units.
Other institutions
All institutional units which are not financial corporations and/or a public corporations.
Standardised guarantees
Standardised guarantees are guarantees that are issued in large numbers, usually for fairly small amounts, along identical lines. It is not possible to estimate precisely the risk of default for each loan, but it is possible to estimate how many, out of a large number of such loans, will de defaulted on.
Adjusted capital value off balance PPP
Adjusted capital value of off balance PPP.

The adjusted capital value of off-balance sheet public private partnerships (PPP).

The adjusted capital value is the initial contractual capital value, progressively reduced over time on the basis of estimates or actual data (in order to reflect better the GFCF and debt impact if the government were to take over the assets during the contract period).

Public-private partnerships (PPPs) are complex, long-term contracts between two units, one of which is normally a corporation (or a group of corporations, private or public) called the operator or partner, and the other normally a government unit called the grantor. PPPs entail significant capital expenditure to create or renovate fixed assets by the corporation, which then operates and manages the assets to produce and deliver services either to the government unit or to the general public on behalf of the government unit.

In a PPP contract, the corporation acquires the fixed assets and is the legal owner of these assets during the contract period, in some cases with the backing of the government. The contract often requires the assets to meet the design, quality, and capacity specified by government, to be used in the manner specified by government to produce the services required by the contract, and to be maintained in accordance with standards defined by government.
As with leases, the economic owner of the assets in a PPP is determined by assessing which unit bears the majority of the risks and which unit is expected to receive a majority of the rewards of the assets. The asset, and thus the gross fixed capital formation, will be allocated to this unit. If the majority of the risk is for the partner, then the assets are on the partner's balance sheet and off the balance of the government sheets. If the majority of the risk is for the government, then assets are imputed on the balance sheet of the government's account together with an imputed debt for the government. The main risk and reward elements to be assessed are:
(a) construction risk: costs overruns, additional costs resulting from late delivery, not meeting specifications or building codes, and environmental and other risks requiring payments to third parties;
(b) availability risk: additional costs such as maintenance and financing, and incurrence of penalties because volume or quality of the services do not meet the standards specified in the contract;
(c) demand risk: demand for the services is higher or lower than expected;
(d) residual value and obsolescence risk: the asset will be worth less than its expected value at the end of the contract and the degree to which the government has an option to acquire the assets;
(e) the existence of grantor financing or granting guarantees, or of advantageous termination clauses, notably on termination events at the initiative of the operator.
Non-performing loans
Loans that have not been serviced for some time.

A loan is non-performing if (a) payments of interest or principal are 90 days or more past their due date; (b) interest payable of 90 days or more has been capitalised, refinanced, or delayed by agreement; or (c) payments are less than 90 days overdue, but there are other good reasons (e.g. debtor filing for bankruptcy) to doubt that payments will be made in full.