Statistical News Release: Half of Dutch debt must be repaid within 5 years

Statistical news
Datum 14 februari 2019

De Nederlandsche Bank (DNB) has published the results of a study that reveals Dutch businesses, banks and government bodies must repay or refinance half of their outstanding debt securities (excluding loans) within the next 5 years. This amounts to EUR 925 billion. Approximately EUR 450 billion (a quarter of total Dutch debt securities) must be returned to investors by the end of next year.

This is the first time DNB has provided an overview of outstanding amounts on Dutch debt securities and corresponding debt maturity. The new debt maturity statistics indicate when the principal on debt instruments must be repaid to investors. This provides an insight into the outlook for future supply and demand of debt security issuances, and potential refinancing risks associated with rising interest rates. The majority of the maturing debt will in practice be refinanced by new debt security issuances. Only a part of the new issuances are intended for new investments. Total Dutch debt securities amounted to over EUR 1,850 billion as at the end of 2018.

The term to maturity of debt in the Netherlands is comparable to other countries in the euro area. The average residual maturity of Dutch debt securities may be slightly longer (over 11 years compared to 9 year in de rest of the euro area), but this is because a significant proportion of Dutch debt only matures just after 2040. This is consistent with the lengthy legal maturity periods of securitisations issued by other financial institutions. When adjusted for securitisations, the average maturity of debt in the Netherlands is also 9 years, just as in the rest of Europe (see Chart 1).

Maturity data in the Netherlands is also comparable to Europe at sector level

The maturity of debt in the Netherlands is also comparable by the type of debt security issuer. At 5 years, debt securities issued by Dutch and European banks have the shortest period to maturity. Half of bank debt securities already mature within 4 years. Compared to banks, non-financial institutions have longer-term financing in place, with an average residual maturity of almost 7 years in the Netherlands, with longer maturity periods of over 8 years in the euro area. Governments in the euro area have on average relatively long and staggered repayment periods, with an average residual maturity of just over 7 years. Around one quarter of the total debt on Dutch and European government bonds is scheduled to be returned to investors over the next 2 years. On average, almost half of government bonds will mature in the next 5 years, highlighting the fact that central governments will have to raise a considerable amount of money from the market in the coming years through major refinancing operations (Chart 2).

More information via T.4.4 en T.4.1.3.