Central government financing requirement

Specific key indicators can be market sensitive information and are therefore published prior to the publication of Economic Survey, August 2018.

The estimates of the central government net financing and financing requirement are presented in table 1 below. The financing requirement is covered by domestic debt issuance or by drawing on the central government account at Danmarks Nationalbank.

The financing requirement for 2018 has been reduced by 17 bn. kr. to 107 bn. kr. due to improved public finances and a postponement of some of the social housing mortgage bond purchases to 2019. The Ministry of Finance expects a financing requirement of 150 bn. kr. for 2019.

The financing strategy is managed by Danmarks Nationalbank and can be found on the website of the government debt management office. 

The budgeting of social housing mortgage bonds has been changed from 2019 onwards. In the annual budget act transactions will appear on § 42 Government debt repayment instead of § 40 Re-lending. This means that the net financing requirement no longer includes social housing mortgage bonds. They will be part of repayment of long term debt like the other state funds managed by Nationalbanken, and therefore still be included in the total financing requirement. The change will have effect from 2019 and therefore doesn’t affect the 2018 estimates.