Government debt continues to grow

01/11/2005 14:00

At the end of June 2005 the Netherlands’ government debt totalled 228 billion euro, a rise by 13 billion euro or 6 percent compared to mid-2004.

Government debt

Government debt

Compared to mid-2003 the national debt increased by 14 percent, i.e. 28 billion euro. The increase is due to government deficits and deficits of public institutions maintaining financial relations with the treasury, for instance statutory social insurers. In the period 2000-2002 the trend in government debt was slightly downward due to several surpluses.

Long-term government debt

Long-term government debt

Long-term government debt

Total government debt is composed of long-term and short-term debts. Long-term government debt totalled 210 billion euro at the end of June 2005 and (mainly) consists of government bonds and private loans with an original duration period of more than one year. The nominal amount of bonded debt equalled 209 billion euro by mid-2005. Converted to the then prevailing stock market prices, the market value equalled 226 billion euro. Long-term government debt rose by 42 billion euro in two years, causing the proportion of long-term government debt to grow.

Short-term government debt

Short-term government debt

Short-term government debt

Short-term government debt equalled 17 billion euro at the end of June this year. Short-term government debt comprises treasury bills and borrowed cash. The treasury balance is regulated on a daily basis and ranges between 0 and 50 million euro. Borrowed cash money commonly does not exceed half a billion euro. Short-term government debt was reduced by 14 billion euro over a period of two years.

Laurens Cazander