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 for 2nd half of 2024
Economic progress raises expectations for the Danish economy in 2024. The continued rise in employment is reflected in higher growth forecasts and a larger surplus on the budget balance, amongst other things. The Danish economy has experienced a robust development in recent years, supported this year by continued growth in the pharmaceutical industry, rising real wages for households, and the reopening of the Tyra natural gas field. Issuance targets are maintained at kr. 65 billion for government bonds and kr. 35 billion for the central government’s short-term loan programmes. In addition, a short-term bond in foreign currency will be issued under the Danish 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 Danmarks Nationalbank prepares a strategy for government borrowing based on the fiscal budget law and input from the Ministry of Finance to match the central government’s annual financing needs, while supporting a well-functioning domestic capital market and facilitating the government’s long-term access to capital markets. The strategy is approved by the Ministry of Finance.
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 – as was the case during COVID-19, for example, when the central government’s borrowing requirement increased sharply within a short period of time.