The evolution of the debt-to-GDP ratio in the graphs is broken down into a GDP effect, a primary balance effect and the category other effects. The GDP effect shows how much the debt ratio increases or declines in percentage points, even if total debt in euros remains unchanged. This is also referred to as the denominator effect. The primary balance effect shows by how many percentage points the debt-to-GDP ratio changes due to higher or lower expenditure, and is part of the numerator effect. A third category comprising other effects shows the difference between the sum of the GDP effect and the primary balance effect as well as the ultimate evolution curve (marked as a red line). The category other effects includes for example the purchase or sale of financial assets. These could be loans or share capital that is provided by the Dutch state during the credit crisis. Also included in the category other effects are the purchase or sale of shares by central government, e.g. in Air France-KLM and ABN AMRO Bank, as well as the settlement of interest rate derivatives.
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