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

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

Sectors Periods Value in million euros Adjusted capital value off balance PPP (million euros) Value in % of GDP Adjusted capital value off balance PPP (% of GDP)
General government sector 2020* 0 0.0
Central government 2020* 0 0.0
Local government 2020* 0 0.0
Social security funds 2020* 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 24 December 2021:
The non-performing loans of the government in 2019 and 2020 have been revised downwards by 40 million euros, because these amounts erroneously included a loan between two government units.

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
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.
Value in % of GDP
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.