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.

Central government budget economy’s borrowing requirement for 2020

Based on the latest State budget or supplementary budget or the proposal of the Ministry of Finance.

Instrument Withdrawal (EUR million)
Treasury bills 17 393
Benchmark bonds 16 000
Others 1 500
Total 34 893
Redemptions 21 020
Net 13 873

Central government net borrowing

Budget 2020
(EUR million)
First supplementary budget (EUR million) Second
supplementary
budget (EUR million)
Third
supplementary
budget (EUR million)
Fourth
supplementary
budget proposal
(EUR million)
Net borrowing, nominal amount 2 248 3 332 12 721 13 601 13 873
Debt management expenses
Issue losses (net) -40 -40 -40 -40 -40
Capital losses (net) -10 -10 -10 -10 -10
Net borrowing
(incl. debt management expenses)
2 198 3 282 12 671 13 551 13 823
, Updated 27.5.2020 at 08:15