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 second half of 2026
The Danish economy is expected to experience a mild expansion in 2026, despite the situation in the Middle East, which has led to significant increases in energy prices and volatility in the financial markets. The target for issuance of domestic government bonds is maintained at kr. 65 billion, and the central government continues to target a total outstanding amount of kr. 20 billion at year-end 2026 in its short-term borrowing programmes. Issuance in the second half of the year will continue to be concentrated in the 2- and 10-year nominal bonds, with limited issuance in the 10-year green government bond, the 30-year nominal bond and the central government’s inflation-linked bond maturing in 2034.
Key messages
Why is it important?
On behalf of the Minister of Finance, Danmarks Nationalbank is responsible for managing central government borrowing and debt. This means that, based on the Danish Finance Act and input from the Ministry of Finance, Danmarks Nationalbank prepares a strategy for central government borrowing so that it covers the central government's annual financing requirement. The strategy is approved by the Ministry of Finance.
The strategy for central government borrowing must ensure that the central government's financing requirement is covered at the lowest possible long-term borrowing costs, taking into account an acceptable level of risk. Furthermore, the aim is to facilitate central government access to the capital markets in the longer term and also that the central government’s issuances will help support a well-functioning domestic capital market.
The strategy for central government borrowing is set out by Danmarks Nationalbank in a strategy announcement published twice a year. In extraordinary circumstances, it is possible to make changes to the strategy outside the biannual publications – this was the case during the pandemic, for example, when the central government's financing requirement rose sharply in a short period of time.