Borrowing requirement

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.

Statistics on central government debt

Central government budget economy’s borrowing requirement for 2026

Instrument Withdrawal (EUR million)
Benchmark bonds 24 000
Other long-term bonds 1 500
Treasury bills 17 315
Total 42 815
Redemptions 31 143
Net 11 672

Central government’s net borrowing in 2026

The table represents the budgeted central government net borrowing.

Budget 2026 (EUR million) 19.12.2025
Net borrowing, nominal amount 9 372
Debt management expenses
Issue losses (net) 0
Capital losses (net) 0
Net borrowing (incl. debt management expenses) 9 372

In 2026, the central government’s budgetary borrowing requirement (upper table) is EUR 2.3 billion higher than the net borrowing requirement estimated on the basis of budget revenues and expenditures (lower table). The difference is due to a one‑off transfer of the State Housing Fund’s (VAR) cash assets to the budget. The transfer does not reduce the government’s borrowing need, as it is an accounting reallocation.

 

, Updated 22.12.2025 at 13:13