Government Debt Management at Danmarks Nationalbank must ensure that the objectives of government debt policy are met. This is achieved by carrying out the tasks specified in Agreement on the division of work in the area of government debt between Danmarks Nationalbank and the Ministry of Finance.
Government Debt Management undertakes the following responsibilities:
Preparation of issuance strategy and issuance of government securities
- Preparation of issuance strategy on the basis of the government budget forecast from the Ministry of Finance.
- Issuance of domestic government securities to cover the central government's domestic financing requirement.
- Issuance of foreign government securities in order to maintain an adequate foreign-exchange reserve and to ensure the central government's market access.
- Supporting a well-functioning market for domestic government securities, e.g. through agreements with primary dealers in Danish government securities for ongoing price quotation (market making).
- Managing the central government's account in order to ensure a robust liquidity buffer.
- Analysis and management of market risk on the central-government debt portfolio. The risk on financial assets and liabilities of the government debt is managed on a consolidated basis.
- Credit risk management in connection with interest-rate and currency swaps.
Management of government funds, on-lending and government securities
- Management of the assets of the three government funds.
- Management of government guarantees and on-lending to government-owned companies.
- Administration of special lending, e.g. bilateral loans to other sovereign states.
Advisory services and international cooperation
- Advising the Ministry of Finance concerning the central government's other financial risks, e.g. interest-rate risk in relation to the financing of subsidised housing.
- Advising ministries and agencies on financial regulation of importance for the government securities' market.
- Advising other government debt management offices.
- Participation in international cooperation in the area of government debt management, including in the OECD, the IMF, the World Bank and the EU.
Contacts with credit rating agencies and investors
- Contacts with credit rating agencies concerning the central government's credit rating.
- Information to investors on the government debt policy and financial and economic conditions.