Through borrowing, the government seeks to pay off redemptions of central government debt and to cover any possible budget deficit. The aim of borrowing is to meet the state’s financing needs cost effectively and in a manner that enables access to financing under all circumstances. At the same time, it is ensured that the burden on government finances caused by interest expenses and redemptions of central government debt is distributed evenly and in a foreseeable manner. When carrying out funding operations, the related risks are kept well under control and at a low level.
Government borrowing is mainly denominated in euros. When borrowing in other currencies, the State Treasury always hedges against currency risk. Following these hedging measures, the entire government debt is in euros.
Central government budget economy’s borrowing requirement for 2019
|Based on the latest State budget or supplementary budget or the proposal of the Ministry of Finance.|
|Instrument||Withdrawal (EUR million)|
|Treasury bills||5 876|
|Benchmark bonds||8 892|
Central government net borrowing
budget (EUR million)
|Second supplementary budget
|Net borrowing, nominal amount||1 705||1 932||1 796||2 474||2 381|
|Debt management expenses|
|Issue losses (net)||-40||-40||-40||-40||-40|
|Capital losses (net)||-10||-10||-10||-10||-10|
(incl. debt management expenses)
|1 655||1 882||1 746||2 424||2 331|