Today, Danmarks Nationalbank publishes Danish Government Borrowing and Debt 2013. The publication describes the central government's borrowing and debt in 2013 and the borrowing strategy for 2014.
At end-2013, the central-government debt amounted to kr. 487 billion, which is unchanged com-pared with the preceding year. The level corresponds to 26 per cent of GDP or kr. 87,000 per capita. The gross general-government debt (EMU debt) and the net general-government debt are often used in international comparisons of sovereign debt. At end-2013, the Danish EMU debt amounted to 44 per cent of GDP, while net debt amounted to 5 per cent of GDP. These levels are low compared with those of most other European countries.
The interest costs on the central-government debt totalled kr. 17 billion, or 0.9 per cent of GDP in 2013, which is also unchanged compared with 2012. The central government's interest costs have been maintained at a low level despite the debt increase since 2008. The reason is that redemptions on existing debt and government deficits are financed at very low interest rates.
Demand for Danish government securities was solid in 2013. The central government issued domestic bonds for kr. 79 billion with bids averaging twice the volume sold at the auctions. The average maturity of nominal bonds issued was just under 10 years, and the average yield to maturity was 1.4 per cent. Issuance in the inflation-linked government bond amounted to just under kr. 13 billion, bringing the total outstanding volume up to a sufficient level to be included in the Barclays index of inflation-linked government bonds.
The target for sales of government bonds in 2014 has been set at kr. 75 billion. Issuance continues in on-the-run issues that are attractive to a broad group of domestic and non-resident investors contributing to ensuring low borrowing costs for the central government. The target for outstanding T-bills is kr. 30 billion at end-2014.
"In 2013, the European government debt markets began to normalise after a long period of high uncertainty. Danish government yields rose slightly during the year, but remained low, and demand for Danish government securities was high. A condition for maintaining low interest rates is sustained investor confidence in the Danish economy. Thus, it is important that Denmark continues to ensure healthy public finances and a low central-government debt", says Governor Lars Rohde, Danmarks Nationalbank.
Enquiries can be directed to Ove Sten Jensen on tel. (+45) 33 63 61 02.