Central government financing requirement

27-08-2019

Updated estimates of the central government net financing and financing requirement are presented in table 1 below.

The financing requirement for 2019 has increased by 36 bn. kr. to 180 bn. kr. due to larger repayments of long-term debt and greater net purchase of social housing mortgage bonds. The Ministry of Finance expects a financing requirement of 65 bn. kr. for 2020.

Danmarks Nationalbank manages the financing strategy for the Danish government, and publishes the strategy on the website of the government debt management office.

The target for government bond sales in 2019 is 75 bn. kr. The target for short-term treasury bills is 30 bn. kr.

The government account at Danmarks Nationalbank covers any additional financing requirement.

Table 1. Net financing requirement and central-government financing requirement
  December 2018 August 2019
DKK bn. 1) 2019 2019 2020
Net financing requirement 9 15 -36
Repayment of long term debt 2) 68 78 55
Repayment of short term debt 3) 30 31 30
Net purchase of state owned funds -14 -12 -13
Net purchase of social mortgage bonds 50 69 29
Financing requirement 144 180 65

1) Rounding may cause component sums to deviate from totals.

2) Incl. payments from the central government in cross-currency swaps.

3) Repayment of short-term debt corresponds to the outstanding amount of Treasury bills and commercial paper in the beginning of the year.

Source: Economic Survey, August 2019.