Overview of Wallonia (8 november 2017) - Portail de … · Service public de Wallonie budget comptabilité trésorerie comités d’acquisition tic logistique • Implicit support

22/11/20171

Service public de Wallonie budget comptabilité trésorerie comités d’acquisitio n tic logistique

OVERVIEW OF WALLONIA8 NOVEMBER 2017

22/11/20172CONTENT

1. WALLONIA

2. BUDGETARY ITEMS

Description Competences Institutional Framework


2. BUDGETARY ITEMS

3. REGIONAL DEBT

Revenues Expenditures Balances

Rating Figures ReasonsPrinciples Funding plan

22/11/20173

WALLONIA


WALLONIA

22/11/20174

AREA :16,844,3 Km²

(55,2% of Belgian

territory)

AREA :16,844,3 Km²

(55,2% of Belgian

territory)

POPULATION** :3,602,216 inhab.

(32% of Belgian population) including

POPULATION** :3,602,216 inhab.


GDP*:€ 94.8 billion

(23.11% of Belgian GDP)

€ 26,331 per inhab.*in 2015 (ICN)

GDP*:€ 94.8 billion

(23.11% of Belgian GDP)

€ 26,331 per inhab.*in 2015 (ICN)

LANGUAGES :French, German

LANGUAGES :French, German

Netherlands

Germany



INFRASTRUCTURES:Waterways: 741km

Rail network: 1,605 km

Roads : 81,207 km

Airports: Brussels South Charleroi, Liege

INFRASTRUCTURES:Waterways: 741km

Rail network: 1,605 km

Roads : 81,207 km

Airports: Brussels South Charleroi, Liege


76,645 inhab. from the German

community

**01/01/2016 (BFP)


76,645 inhab. from the German

community

**01/01/2016 (BFP)

France

Luxembourg

22/11/20175

• Mobility, waterways, sport facilities, heritageEquipment & Transport

• Environment, water, conservation of nature, rural renovation, waste, agricultureNatural resources

•Town and country planning, housing, integration of the disabled people, social action and health, energyQuality of life



action and health, energy

•Municipalities, provinces, public center of social assistance, school buildingsLocal authorities

•Economy, employment, professional training, foreign trade, international relationships, development cooperation, research, technologies, tourism, taxation, european structural funds

Economic activities

22/11/20176


Parliament of Wallonia

75

Public Administration Units


Government of Wallonia

7

22/11/20177

Public Service of Wallonia


Transversal

Operational


22/11/20178


22/11/20179

(Thousands €)REVENUES

2014 executed 7,244,126

2015 executed 11,764,755

2016 executed 12,185,101



2016 executed 12,185,101

2017 initial 12,272,191

2017 adjusted 12,410,701*

*without debt amortization (Debt amortization fund for social housing) : 160 millions €

22/11/201710

Decomposition of the REVENUES (budget adjusted 2017)

42%27%

3% 0% 6th Reform revenue

Saint-Emilie revenue

Regional revenue



28% Regional revenue

Community revenue

Various revenue

22/11/2017116th state reform revenues

(Thousands €)2017 initial 2017 adjusted

SLF net revenues 5,203,501 5,187,669

Additionnals included 2,569,182 2,572,550

Additionnals 3,323,718 3,315,351

Fiscal expenditures -754,536 -782,881

Counting the personal tax income (revenue 2015) 40,080

Competences revenues included 2,590,417 2,571,217



Competences revenues included 2,590,417 2,571,217

Fiscal expenditures allocation 477,548 433,396

Employement allocation 522,756 528,326

Other competences allocation 384,291 387,875

Transition revenue 617,071 632,097

Solidarity mechanism 609,884 610,656

Fair refinancing Brussels institutions (commuters) -16,396 -16,396

Contribution for the accountability of pensions -4,737 -4.737

Traffic penalties of SLF included 43,902 43,902

22/11/201712

Saint-Emilie Revenue

(Thousands €)2017 initial 2017adjusted

Saint-Emilie revenue 3,454,465 3,483,372

Family Allowances 2,223,226 2,241,442

Care for the elderly 1,128,788 1,138,419



Care for the elderly 1,128,788 1,138,419

Health care and aid to the population 210,728 212,453

Support Fund for Immigration Policy and European

Fund for the Integration of the Third country

nationals

6,214 6,238

Base and stabilization of the budget -114,491 -115,180

22/11/201713Regional revenues

(Thousands €) 2017 initial 2017adjusted

Regional revenues 3,254,897 3,376,482

Regional revenues imposed by the Federal State

included2,167,225 2,075,588

Registration fees 1,293,473 1,204,970

Property tax 34,783 34,783

Inheritance tax 825,301 822,454

Interests and fines 13,668 13,381

Regional revenues imposed by the Walloon Region

included839,677 848,907


included839,677 848,907

Gaming and wagering tax 23,000 26,700

Entertainment devices tax 18,800 18,800

Television licence 100,145 104,552

Circulation tax 454,024 468,127

Bringing into use of vehicles tax 116,250 122,107

Interests and fines 1,171 1,379

Other Regional taxes (machines, water, waste,..) 126,287 107,242

Other revenues 247,995 452,687

Revenue from the community 359,328 362,478

22/11/201714

Evolution of the REVENUES

3 000 000

4 000 000

5 000 000

6 000 000

Initial 2016

(Thousands €)


0

1 000 000

2 000 000

3 000 000

6th Reform

revenue

Saint-Emilie

revenue

Regional revenue Community

revenue

Various revenue

Adjusted 2017

22/11/201715

(Thousands €) EXPENDITURES

2014 executed 7,852,730

2015 executed 12,375,864

2016 executed 12,848,702



2016 executed 12,848,702

2017 initial 13,354,688

2017 adjusted 13,450,851*

*without debt amortization (Debt amortization fund for social housing) : 160 millions €

22/11/201716Decomposition of the expenditures (budget adjusted 2017)

12%

0%

2%

17%37%

3%

Remunerations

Cabinet expenditures

Alternative funding

Expenditures linked to inflation

Units Public administration

European Co-funding

Priority Actions for the Walloon future

Vocational transition programs

Debt



8%

1%

0%0%

2%

0%

14%

1%0%

2%

Debt

Provisions

Primary expenditures

Expenditures linked to revenues

Plan Marshall 2.Vert

Pluriannual expenditures

Transferred expenditures

Plan Marshall 4.0

22/11/201717Decomposition of the expenditures (budget 2017)

(Thousands €) Initial 2017 Adjusted 2017

Remunerations 1,559,934 1,595,680

Cabinet expenditures 23,500 23,500

Alternative funding 274,684 274,684

Expenditures linked to inflation 2,296,451 2,300,973

Units Public administration 1,099,255 1,108,255

European Co-funding 136,500 128,816

Priority Actions for the Walloon future 2,444 2,444



Vocational transition programs 24,556 24,556

Debt 316,048 303,378

Provisions 10,741 0

Primary expenditures 1,806,363 1,854,379

Expenditures linked to revenues 190,192 195,265

Plan Marshall 2.Vert 31,360 27,430

Pluriannual expenditures 234,823 236,627

Transferred expenditures 4,938,507 4,963,012

Plan Marshall 4.0 409,330 411,852

TOTAL EXPENDITURES 13,354,688 13,450,851

22/11/201718

Evolution of the expenditures

500 0001 000 0001 500 0002 000 0002 500 0003 000 0003 500 0004 000 0004 500 0005 000 000



0500 000 Initial 2016

Adjusted 2017

22/11/201719

(Thousands €)

Initial 2016 Initial 2017 Adjusted 2017

REVENUES 11,865,971 12,272,191 12,570,701

EXPENDITURES 12,876,821 13,354,688 13,610,851

Funding gap -1,010,850 -1,082,497 -1,040,150



Funding gap -1,010,850 -1,082,497 -1,040,150

ESA (European System of Accounts) CORRECTIONS 624,953 765,268 722,932

Exceptional expenses (radicalism/security) 11,000 17,251 17,251

ESA 2010 Budget balance -374,897 -299,978 -299,967

22/11/201720

ESA CORRECTIONS

(Thousands €)

Initial 2016 Initial 2017 Adjusted 2017

Balance of the economic grouping -36,511 109,239 249,133

Amortizations 27,653 18,681 16,998



Underspend 214,000 234,000 252,500

Credit granting and equity investments (OCPP nets –

codes 8)357,011 340,907 148,907

SWAP operation 68,000 71,099 62,400

Others -5,200 -8,658 -7,006

TOTAL ESA Corrections 624,953 765,268 722,932

22/11/201721


22/11/201722

RATING MOODY’S

� Fiscal trajectory shifting away from the

previously planned fiscal consolidation

� Region's debt trajectory



� Debt structure and solid liquidity profile

� Relatively robust institutional framework

of the Aa3 Belgian sovereign (stable

outlook)

StableStable

outlookoutlook

22/11/201723

KEY FIGURES (08/11/2017) (1/2)

(Millions €) 31/12/2015 31/12/2016 08/11/2017

Direct Debt(1) 7 067.1 8 402.0* 8 949.4

Indirect Debt (SPABS+SWDE) (2) 795.7 795.4 795.4

Long Term Regional Debt

(3) = (1) + (2) 7 862.8 9 197.4 9 744.8

Debit balance on the current account(4) 1 179.5 280.0 286.7



Contribution of the Public Administration

Units(cash pooling) (5) 1 320.7 1 445.8 1 212.7

Short Term Regional Debt

(6) = (4) - (5) -141.2 -1 165.8 -926

Total Regional Debt

(7) = (3) + (6) 7 721.6 8 031.6 8 818.8

*The huge increase between 2015 and 2016 is linked to the prefunding of the year 2017 up to 851,4 million €. This amount

allows to decrease the debit balance on the current account.

22/11/201724

KEY FIGURES (2/2)

• Secured debt (senior): 7,044.7 million € (31/12/2016)

• Maastricht Debt Contribution on the 31 december 2016 - expanded

perimeter (April 2017 notification ): 21,275 million €

• Implicit rate: 2.78% (31/12/2016)



• Average Life span (in years): 11.42 (31/08/2017)

• 89.70% of the direct debt is at fixed rate

• Debit on current account terms: 3,250 million €

• EMTN Program: 5 billion € (since 27/06/2017)

22/11/201725

• Responsiveness, flexibility, transparency and communication

• Optimal distribution between fixed rate and floating rate

• Levelling of the debt amortisation schedule

• Principles of prudence, competitive procedure and efficiency of the decision making process

MANAGEMENT PRINCIPLES



making process

• Appropriate utilisation of derivative financial instruments

• Diversification of the investor base

22/11/201726

AMORTISATION SCHEDULE OF THE LONG-TERM DEBT*Rating Figures ReasonsPrinciples Funding plan

500.00

600.00

700.00

800.00

Schedule of the Regional direct, SPABS and FADELS D EBT on 08/11/2017- million EUR - *Without deficit


0.00

100.00

200.00

300.00

400.00

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

2045

2047

2055

2057

2066

2116

FADELS (Debt amortization fund for social housing)

Variable rate SPABS

Fixed rate SPABS

Extendibles

Variable rate loans

Fixed rate or assimilated loans

22/11/201727

Millions € 2016R 2017P

Funding gap 726.8** 1,040.2*

Amortisations 288.9 698***

FUNDING NEEDS 1,015.7 1,738.2

Prefinancing -243.5 -983.7

REALIZATIONS 1,623.5 948

EMTN Issues 980.5 458

* Private placement 980.5 458

FUNDING PLAN 2016 – 2017

Prefinancing 2018: 193,5 MEUR

With neutralization of the

underspend: 446 MEUR

***Including 275 MEUR for the indirect

debt (SPABS: Patrimonial companies of

administration of the school buildings)

and 160 MEUR for the Fadels (Debt



*Underspend estimated : 252,5 million EUR and included in the funding gap presented

**Funding gap budgeted: 1,011 million euros (including underspend estimated of 214 MEUR)

* Private placement 980.5 458

* Benchmark 0 0

MTN Issues 0 75

* Private placement 75

* Commercial Paper

Schuldschein 418 215

Bank loans 225 200

and 160 MEUR for the Fadels (Debt

amortization fund for social housing)

22/11/201728

OTHER GOOD REASONS TO INVEST IN WALLONIA

• Absence of exchange rate risk

• Treasury centralisation of numerous units administration public

• Management guided by the Regional Treasury Council

• Higher return in comparison with OLO



• Higher return in comparison with OLO

• Implicit support of the Federal State

• Certain degree of fiscal autonomy

• Social Responsible bond issuer soon

22/11/201729

AT YOUR DISPOSAL

DORIGATO Marie, Attachée – 081/77 25 16 – [email protected]

FARVACQUE Jamie, Attachée– 081/77 25 20 – [email protected]

GENETTE Alain, Inspecteur général – 081/77 25 00 – [email protected]

MAASKANT Serge, Attaché – 081/77 25 09 – [email protected]


MAASKANT Serge, Attaché – 081/77 25 09 – [email protected]

NEVE Martin, Attaché - 081/77 25 02 – [email protected]

PAUQUAY Christina, Attachée – 081/77 25 17 – [email protected]

[email protected]/financement

Documents

Overview of Wallonia (8 november 2017) - Portail de … · Service public de Wallonie budget comptabilité trésorerie comités d’acquisition tic logistique • Implicit support