Unchanged funding in government bonds

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Press release 20 February 2013

The central government borrowing increases during 2013 and 2014. This is mainly due to the increased on-lending to the Riksbank of SEK 100 billion. Borrowing in government bonds remains at SEK 74 billion in 2013 and SEK 84 billion in 2014.

The Swedish economy has resisted the international economic downturn relatively well. However, GDP-growth is weak and lower tax income affects central government finances. The net borrowing requirement increases moderately in comparison with the previous forecast, excluding the on-lending to the Riksbank.

– Sweden's central government finances remain among the strongest in Europe. Sweden is able to counter a weaker economic growth, says Director General, Hans Lindblad.

Central Government Borrowing will increase to SEK 165 billion this year. The borrowing requirement was SEK 55 billion in the previous forecast. The increased borrowing requirement is mainly due to the increased on-lending to the Riksbank of SEK 100 billion.

Net borrowing requirement and central government debt (SEK billion)
  201220132014
Net borrowing requirement 25 165 63
Central government debt 1 153 1 310 1 388
Central government debt, % of GDP 32.5% 35.9% 36.6%
Central government debt incl. on-lending and money market assets, % of GDP 29.0% 30.0% 30.9%

The borrowing requirement will be split into several instruments. The bulk part of the increase is in foreign currency due to the on-lending to the Riksbank's foreign exchange reserve. Borrowing in government bonds remains at SEK 74 billion in 2013 and SEK 84 billion in 2014. We will mainly issue in the ten-year maturity. At present we are not planning any auctions in longer maturities. We raise the issue volume of inflation-linked bonds to SEK 12 billion per year.

Borrowing (SEK billion)
  201220132014
Government bonds 59 74 84
Inflation-linked bonds 7 12 12
T-bills 105 130 150
Foreign currency bonds 35 137 71
of which to the Riksbank 35 130 32

For more information, please contact:

Thomas Olofsson, investor relations, +46 8 613 47
Unni Jerndal, press relations, +46 8 613 45 96 

Central Government Borrowing, Forecast and Analysis 2013:1