Central government financing requirement for 2021 and 2022

Central government financing requirement for 2021 and 2022


The Economic Survey, December 2021, will be published December 17.

The estimates of the central government net financing and financing require-ment for 2021 and 2022 can be found in table 1 below. The financing require-ment for 2021 has been revised to DKK 226 bn., which is a decrease of ap-proximately DKK 70 bn. compared to the estimate in The Economic Survey, August 2021. The decrease is primarily due to a higher expected tax revenue, higher expected payments of deferred tax payments, and a lower expected fi-nancing requirement related to central government on-lending in 2021. The estimate of the central government financing requirement for 2022 is DKK 146 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
  August 2021
December 2021
DKK bn. 1) 2021 2022 2021 2022
Net financing requirement 28 -18 -77 -47
Repayment of long term debt 2) 109 99 144 99
Repayment of short term debt 3) 153 95 153 70
Net purchase of state owned funds -12 0 -12 0
Net purchase of social mortgage bonds 19 19 19 24
Financing requirement 296 195 226 146

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 commercial pa-per in the beginning of the year.

Source: The Economic Survey, December 2021.


Originally published at http://www.en.fm.dk/news/news/2021/december/central-government-financing-requirement-for-2021-and-2022/

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