The Danish government debt has the highest possible rating (AAA/Aaa) with stable prospects from the largest international credit rating agencies, due to, inter alia, the low debt level and the robust debt structure. At the end of 2020, the Danish central-government debt amounted to kr. 536 billion or 23 per cent of GDP.
A part of the central government debt reflects borrowing on behalf of government-owned companies (on-lending). Adjusted for such on-lending the central government debt amounted to kr. 398 billion, equivalent to 17 per cent of GDP, at the end of 2020.
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||2020|
|Pledging of collateral for swaps
|Central government's account at Danmarks Nationalbank||-137|
|Government funds ||-26|
|Bonds to finance social housing||||||-108|
|Central-government debt, per cent of GDP||23|
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. Denmark's EMU debt is estimated by the European Commission to amount to 45 per cent of GDP at the end of 2020. 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.