Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Central government borrowing strategy 2025
The Danish economy continues to stand strong going into 2025. Inflation has stabilised at a low level and the economy is still characterised by low unemployment, a substantial balance of payments surplus and surpluses on public finances. The central government's financing requirement for 2025 is expected to be limited. As in 2024, the target for government bond issuance is set at kr. 65 billion, of which up to kr. 10 billion will be issued as green bonds under an updated Green Bond Framework. The central government's short-term loan programmes (T-bills and commercial papers) are set at a maximum total outstanding of kr. 25 billion at the end of the year, with the possibility of variation during the year. In addition, a short-term bond in foreign currency will be issued under the central government's EMTN programme.
Key messages
Why is it important?
On behalf of the Minister of Finance, Danmarks Nationalbank is responsible for the management of government borrowing and debt. This means that, based on the Danish Budget Law and input from the Ministry of Finance, Danmarks Nationalbank prepares a strategy for government borrowing to match the central government's annual financing needs. The strategy is approved by the Ministry of Finance.
The strategy for government borrowing must ensure that the central government's financing needs are covered at the lowest possible long-term borrowing costs, taking into account an acceptable level of risk. Furthermore, the aim is to facilitate the central government's access to the capital markets in the longer term and also that the government’s issuances should help support a well-functioning domestic capital market.
The strategy for government borrowing is published twice a year. In extraordinary circumstances, Danmarks Nationalbank may make changes to the strategy outside the biannual publications – this was the case during the pandemic, for example, when the central government's borrowing requirement rose sharply in a short period of time.