Central Government Debt

The Danish government debt has the highest possible rating (AAA/Aaa) from the largest international credit rating agencies , due to, inter alia, the low debt level. At the end of 2019, the Danish central-government debt amounted to kr. 421 billion or 18 per cent of GDP. In addition, the debt structure is very robust.

A part of the central government debt reflects borrowing on behalf of government-owned companies. Adjusted for such on-lending the central government debt amounted to 13 per cent of GDP in 2019. 

The central government debt is calculated as the nominal value of domestic and foreign debt less the balance on the central government's account at Danmarks Nationalbank and the assets of the government funds, cf. Table.

Composition of central government debt

Kr. billion, year-end​2019
Domestic debt612
Foreign debt0
Pledging of collateral for swaps 1)​0
​Central government's account at Danmarks Nationalbank-70
Government funds -34
​Bonds to finance social housing​-87
Central-government debt​421
Central-government debt, per cent of GDP18

Note:​ A positive figure indicates a liability; a negative figure indicates an asset.

1) Cash collateral for the market value of the swap portfolio. A positive number means the counterparties net have posted collateral.​​

Other public debt measures

The gross general government debt (EMU debt) is often used in international comparisons of sovereign debt. In recent years, the EMU debt has been considerably below the reference value of 60 per cent of GDP in the Stability and Growth Pact. At the end of 2019, Denmark's EMU debt amounted to 33 per cent of GDP according to Eurostat. This is low compared with the level in other EU member states. The primary difference between central government debt and EMU debt is that local government debt is included and that bonds to finance social housing and the balance on the central government's account is not offset in the EMU debt.