Central government financing requirement for 2021

Central government financing requirement for 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.

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 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.

Originally published at http://www.en.fm.dk/news/news/2021/august/central-government-financing-requirement-for-2021/

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