This amount includes both money market paper – with agreed maturities up to one year – and bonds (long-term debt certificates). Most certificates were issued by banks (41% of the amount outstanding). In recent years, however, the indebtedness of ‘other financial institutions’ has grown most rapidly. This sector includes mainly Special Purpose Vehicles or SPVs, entities created by financial institutions for the purpose of repackaging mortgage and corporate loans. At end-July, they took up 32% of total outstanding debt certificates, against 24% at the beginning of 2007.
As a result of the financial market difficulties, SPV issuance stagnated early this year. From the second quarter onwards, however, new debt issues have again been considerable. The third and last important debt-issuing sector is government. Budget surpluses recorded since 2005 have reduced Dutch government debt, thus also reducing the share of government in the debt markets. In early 2007, government debt stood at over 25% of total debt outstanding. By end-July, this share had fallen below 22%.