Central government financing requirement for 2020


The Economic Survey, May 2020, will be published May 26th.

The estimates of the central government net financing and financing requirement for 2020 can be found in table 1 below. The financing requirement has been revised to DKK 294 bn., which is an increase of approximatively DKK 207 bn. compared to the estimate in The Economic Survey, December 2019. The increase is primarily due to the Covid-19 epidemic and the related economic support measures as well as lower tax receipts due to the expected economic downturn.

The financing requirement is met by debt issuance or by drawing on the central governments account at Danmarks Nationalbank.

The financing strategy is published by Danmarks Nationalbank on the website of the government debt management office.

Table 1. Net financing requirement and central-government financing requirement for 2020
  December 2019 May 2020
DKK bn. 1) 2020 2020
Net financing requirement -22 178
Repayment of long term debt 2) 60 71
Repayment of short term debt 3) 30 24
Net purchase of state owned funds -12 -8
Net purchase of social mortgage bonds 30 29
Financing requirement 87 294

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

2) Incl. payments from the central government in cross-currency swaps and buybacks of long term debt with maturity date beyond 2020.

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

Source: The Economic Survey, May 2020.