Analysis focuses on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our outlook for the Danish economy and our assessment of financial stability. The series is targeted at people with a broad interest in economic and financial matters.

International cooperation

Lower borrowing needs in Danish corporations compared to European during COVID-19

Corporate borrowing has been virtually unchanged in Denmark during the first wave of the pandemic, whereas corporations in a number of European countries have increased their borrowing heavily. The national differences especially reflect varying corporate liquidity needs. Corporate borrowing has been higher in countries that have seen a heavy economic downturn. The capital reserves accumulated by corporations prior to the first coronavirus outbreak have also had an impact on their borrowing needs. Another explanation of the varying borrowing needs and loan supply may be the extensive policy measures implemented by several countries to support corporate liquidity.