Central government financing requirement for 2021
29-08-2021
The Economic Survey, August 2021, will be published August 30.
The estimates of the central government net financing and financing requirement for 2021 can be found in table 1 below. The financing requirement has been revised to DKK 296 bn., which is a decrease of approximatively DKK 11 bn. compared to the estimate in The Economic Survey, May 2021. The decrease is primarily due to a higher expected tax revenue for 2021. The estimate of the central government financing requirement for 2022 is DKK 195 bn.
The financing requirement is met by debt issuance or by drawing on the central governments account at Danmarks Nationalbank.
| Table 1. Net financing requirement and central-government financing requirement for 2021 | |||
|---|---|---|---|
| May 2021 | August 2021 | ||
| DKK bn. 1) | 2021 | 2021 | 2022 |
| Net financing requirement | 54 | 28 | -18 |
| Repayment of long term debt 2) | 94 | 109 | 99 |
| Repayment of short term debt 3) | 153 | 153 | 95 |
| Net purchase of state owned funds | -12 | -12 | 0 |
| Net purchase of social mortgage bonds | 19 | 19 | 19 |
| Financing requirement | 307 | 296 | 195 |
|
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 2021. 3) Repayment of short-term debt corresponds to the outstanding amount of Treasury bills and commer-cial paper in the beginning of the year. Source: The Economic Survey, August 2021. |
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Originally published at https://en.fm.dk/news/news/2021/august/central-government-financing-requirement-for-2021/
