Dutch funded debt down sharply in 2000

In the fourth quarter of 2000 the funded debt of the Dutch central government fell for the third quarter in a row. This resulted in a fall in the funded debt in 2000 for the first time since 1994, by nearly 10.5 billion euro. On 31 December 2000 the funded government debt was 174 billion euro; back at the level of 1995. The funded national debt now amounts to 11 thousand euro per capita.

At the start of 2000 the government debt rose initially: by 0.7 billion euro. However in the subsequent three quarters it fell by 5.6, 1.6 and 3.9 billion euro respectively. The fall in the fourth quarter is the result of just over 2.2 billion euro of new debt and 6.1 billion euro repayments.

The 2.7 billion euro revenue from the sales of licences for the third generation of mobile telephones (UMTS) will only be available for further reduction of the government debt in 2001.

Dutch national debt 1993-2000

In the last three months of 2000 the Dutch State Treasury Agency at the Ministry of Finance turned to the capital market just once. In November the 2000 4.75% loan, repayable from 15 February 2003, was reopened. The total outstanding amount on this loan increased to 8 billion euro. The emission scheduled for October was cancelled because of the unexpected favourable position of the government finances.

Laurens Cazander