Trends in refinancing the special funds that provide loans to federal public institutions in December 2020

Trends in refinancing the special funds that provide loans to federal public institutions in December 2020
in €m

 

 

Debt level

Borrowing
(increase)

Debt repayment
(decrease)

Debt level

Change in debt level
(balance)

Interest

30 November 2020

December

December

31 December 2020

December

December

Total

66,032

2,600

-600

68,032

2,000

61

broken down by purpose

 

 

 

 

 

 

Financial Market Stabilisation Fund (loans for resolution authorities pursuant to section 9 (5) of the Stabilisation Fund Act)¹

30,000

600

-600

30,000

-

10

Economic Stabilisation Fund (loans for KfW pursuant to section 23 of the Stabilisation Fund Act)²

36,032

2,000

-

38,032

2,000

52

Any discrepancies in totals are due to rounding.
¹Under section 9 (5) of the Stabilisation Fund Act, the Federal Ministry of Finance is empowered to borrow up to €30bn for the Financial Market Stabilisation Fund so that the Fund can grant loans to resolution authorities for the purpose of refinancing (as per section 8 (10) of the Stabilisation Fund Act) assets that they have taken over. Such borrowing is neutral overall in terms of debt, because it replaces the funds that resolution authorities would otherwise have to borrow on the market. However, it does increase the debt level in federal securities.
²Under section 24 (1) in conjunction with section 23 of the Stabilisation Fund Act, the Federal Ministry of Finance is authorised to borrow up to €100bn for the Economic Stabilisation Fund for the purpose of granting loans. Under section 23 of the Stabilisation Fund Act, the Economic Stabilisation Fund can grant loans to KfW for the purpose of refinancing the special programmes assigned to it by the federal government in response to the coronavirus crisis.
Source: Federal Ministry of Finance

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