Strong economic recovery reduces central government borrowing requirement


Strong economic recovery reduces central government borrowing requirement

The Swedish economy is recovering increasingly faster after last year's drop resulting from the pandemic. The higher economic growth leads to increased income from taxes for the central government and thereby a stronger budget balance, lower borrowing requirement, and lower debt. The Debt Office is reducing its borrowing and intends to introduce a new 50-year government bond.

“So far this year, the Swedish economy has resisted the pandemic well, and an even more rapid recovery is expected ahead when the spread of infection subsides and restrictions are eased, which strengthens central government finances. There are however differences in the rate of recovery, and some sectors and businesses are still being hit hard by the pandemic,” says Hans Lindblad, Director General of the Debt Office.

In the central government borrowing report presented by the Debt Office today, GDP is expected to be back to its pre-crisis level by around mid-year and grow by 3.5 per cent this year. This is just over one percentage point higher than in the previous forecast from February. Next year, GDP is expected to grow by 3.7 per cent. The impact of the pandemic on the labour market, however, will be more prolonged, and unemployment remains at a higher level than prior to the crisis.

Central government budget balance is strengthened

The Debt Office now expects the central government budget balance to be close to balanced this year, with a surplus next year of SEK 65 billion that is twice as large as in the previous forecast. The upward revision is due to the positive effects of the higher growth outweighing the extra spending for new pandemic-related support measures from the Government. The Riksbank’s repayment of foreign currency loans raised on its behalf by the Debt Office also contributes to the budget balance approaching a surplus again.

Forecast for Swedish economy and central government finances
Previous forecast (Feb 2021) in parentheses2020 outcome20212022
GDP growth (%)-2.83.5 (2.4)3.7 (4.0)
Unemployment (% of labour force)8.3 8.7 (8.6)7.7 (7.5)
Budget balance (SEK billion)-221 -4 (-63)65 (30)
Central government net lending (SEK billion)-167-103 (-140) -31 (-47)
Central government net lending (% of GDP)-3.4 -2.0 (-2.7)-0.6 (-0.9)
Central government debt (SEK billion)1,2801,283 (1,348)1,221 (1,324)
Central government debt (% of GDP)2625 (26)22 (25)
Maastricht debt (% of GDP)4039 (40)36 (38)

Reduced borrowing and new 50-year government bond

The upward revision of the budget balance entails a lower central government borrowing requirement. The Debt Office is therefore reducing the borrowing in both treasury bills and nominal government bonds.

The Debt Office intends to issue a 50-year government bond, which will extend the government bond curve and the term to maturity of the debt. The plan is to introduce the new bond in mid-June through what is known as a syndication, providing the market conditions are suitable. The planned issuance volume is SEK 10 billion. The Debt Office’s overall assessment is that the long bond can reduce the risk in the central government debt, at a low cost from a historical perspective.

Central government borrowing, SEK billion
Previous forecast (Feb 2021) in parentheses 2020 outcome20212022
Nominal government bonds100 85 (96)70 (90)
Inflation-linked bonds1321 (21) 21 (21)
Green bonds200 (0)0 (0)  
Treasury bills (stock at year-end)173138 (185)183 (225)
Foreign currency bonds43 17 (17)17 (17)
–      on behalf of the Riksbank430 (0)0 (0)
–   for the central government017 (17)17 (17)

Central government debt as proportion of GDP already goes down this year

The central government debt amounts to SEK 1,283 billion at the end of 2021, to then decrease to SEK 1,221 billion next year. As a share of GDP, the debt will already decrease this year – from 26 per cent till 25 per cent. Next year, the debt as a share of GDP is expected to be down to 22 per cent.

The debt for the entire public sector according to the Maastricht measure is expected to decrease from 40 per cent of GDP at the end of 2020 to 39 per cent in 2021 and 36 per cent in 2022. It is also this measure that is used in the fiscal policy framework for the so-called debt anchor, which entails that the debt is to amount to 35 per cent of GDP (±5 percentage points).

The report Central Government Borrowing – Forecast and Analysis 2021:2 is attached below.

The report will be presented at a digital press conference today, 27 May, at 10:00 a.m. CEST.

Link to live stream of the press conference:

Journalists will be able to send in questions via the website, to be answered during the press conference. The code required will be presented in a slide during the live broadcast. For further information or interview inquiries, contact the Debt Office’s press function by phone: +46 (0) 8 613 47 01 or e-mail:

The preliminary publishing date for Central Government Borrowing – Forecast and Analysis 2021:3 is 27 October 2021.

The Debt Office is the Swedish government’s financial manager. Our mandate includes central government borrowing and debt management. The objective is to do this at the lowest possible cost while avoiding excessive risk. In the report Central Government Borrowing – Forecast and Analysis, published three times a year, forecasts are presented for the macroeconomic development and central government budget balance for the next two years.On the basis of these forecasts, the Debt Office calculates how much the government needs to borrow and sets up a plan for borrowing that is also included in the report.


To view this piece of content from, please give your consent at the top of this page.
To view this piece of content from, please give your consent at the top of this page.

About GlobeNewswire

One Liberty Plaza - 165 Broadway
NY 10006 New York

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

New Zolgensma data demonstrate age-appropriate development when used presymptomatically and rapid, clinically meaningful efficacy in symptomatic children, even those with severe SMA at baseline18.6.2021 18:30:00 CEST | Press release

All children (100%) treated presymptomatically in the SPR1NT two-copy cohort survived without respiratory or nutritional support, and sat independently for ≥30 seconds, most (11/14) within the WHO window of expected normal development The majority of children (82%) treated in STR1VE-EU achieved developmental motor milestones not observed in the natural history of SMA Type 1, including patients with more severe disease More than 1,200 patients have now been treated with Zolgensma globally across clinical trials, managed access programs, and in the commercial setting1 Basel, June 18, 2021– Novartis today announced data that reinforce the transformational benefit of Zolgensma® (onasemnogene abeparvovec), an essential, one-time treatment and the only gene therapy for spinal muscular atrophy (SMA). New late-breaker data from the completed two-copy cohort of the Phase 3 SPR1NT clinical trial demonstrate age-appropriate milestone development in presymptomatic children with SMA without respira

The results of the private placement of Subordinated Convertible Notes and private placement of Secured Notes of AS PRFoods / transactions with persons connected with the issuer18.6.2021 16:22:48 CEST | Press release

THIS NOTICE IS NOT INTENDED FOR PUBLICATION, ALLOCATION OR TRANSMISSION, IN PART OR WHOLLY, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, OR ELSEWHERE THE DISCLOSURE OR TRANSMISSION OF THIS INFORMATION IS NOT ALLOWED. By a company announcement dated 04.06.2021, AS PRFoods (hereinafter "PRFoods") informed investors that it was conducting an issue of subordinated convertible notes, whereunder PRFoods is to issue up to 350 subordinated convertible notes, with the maximum aggregate nominal value of up to EUR 3,500,000, nominal value of EUR 10,000 per subordinated convertible note, interest rate of 7% per annum and maturity date on 01.10.2025 (hereinafter the “ConvertibleNotes”). The subscription period for the Convertible Notes ended on 14.06.2021. In course of the private placement, investors subscribed for 237 Convertible Notes, with the aggregate nominal value of EUR 2,370,000, i.e. for approximately 67% of the m


Bid procedure, 2021-06-23BondsBonds issued in SEK by Swedish non-financial undertakings. The following bonds are eligible for delivery: RIKSHEM AB: SE0011452507, 2023-07-18 RIKSHEM AB: SE0011869981, 2023-05-08 EPIROC AB: XS1918042364, 2023-12-06 EPIROC AB: XS2258568778, 2026-05-18 SCANIA CV AB: XS2042641121, 2022-08-22 SCANIA CV AB: XS2332891089, 2023-04-19 AB INDUSTRIVARDEN: SE0011869668, 2022-02-28 AB INDUSTRIVARDEN: SE0012676724, 2023-02-20 SVENSK FASTIGHETS FIN: SE0012194058, 2022-02-28 SVENSK FASTIGHETS FIN: SE0012676872, 2022-09-07 Delivery of a Bond may not occur if the Counterparty has purchased the Bond from the issuer more recently than one month prior to the date of announcement of the Special terms, that is, the purchase may not have taken place after: 2021-05-23Bid date2021-06-23Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SE0011452507: 30 mln SEK +/-30 mln SEK SE0011869981: 30 mln SEK +/-30 mln SEK XS1918042364: 30 mln SEK


Bid procedure, 2021-06-22BondsKOMMUNINVEST I SVERIGE: 2311. SE0010948240. 2023-11-13 KOMMUNINVEST I SVERIGE: 2505, SE0011414010, 2025-05-12 KOMMUNINVEST I SVERIGE: 2805, SE0015660139, 2028-05-12 BidsBids on interest and volume are entered via Bloomberg Bond Auction SystemBid date2021-06-22Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)2311: 500 mln SEK +/-250 mln SEK 2505: 1000 mln SEK +/-500 mln SEK 2805: 750 mln SEK +/-350 mln SEK Highest permitted bid volume (corresponding nominal amount)2311: 500 mln SEK per bid 2505: 1000 mln SEK per bid 2805: 750 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 11.15 (CET/CEST) on the Bid dateDelivery and payment date2021-06-24Delivery of bondsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383General Terms and ConditionsGeneral Terms and Conditions General Terms and Condition


Bid procedure, 2021-06-23CertificateCommercial paper issued in SEK by non-financial companies with their registered office in Sweden and with a remaining maturity of up to six months on the Bid date. i.e. with the latest maturity date as of 2021-12-23 Delivery may not be made in commercial paper purchased by the Counterparty from the issuer less than one week prior to the date for announcing the Special terms, i.e. the purchase may not have been made after 2021-06-11 BidsCounterparties may make one bid per Credit rating class and maturity class. Bids are made to tel 08-696 69 70 and confirmed by e-mail to date2021-06-23Bid times09.00-09.30 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SEK 4 billionHighest permitted bid volume (corresponding nominal amount)The total bid volume from one Counterparty for the two Credit rating classes may not exceed SEK 4 billion. No bid may contain Commercial paper in excess of SEK 250 million issued by the s

Eolus förvärvar två fullt tillståndsgivna svenska vindkraftsprojekt18.6.2021 16:15:00 CEST | Pressemelding

Hässleholm den 18 juni 2021 Eolus har tecknat avtal med RWE om att förvärva två fullt tillståndsgivna svenska vindkraftsprojekt. Projekten som omfattar 99 MW är lokaliserade i SE3 och Eolus kommer under sommaren att påbörja försäljningsprocessen med ambitionen att teckna avtal med en investerare under hösten 2021. Projekten är belägna i Avesta kommun (Skallberget/Utterberget) och Hedemora kommun (Tjärnäs) och omfattar totalt vardera 74,4 MW och 24,8 MW. Projekten är fullt tillståndsgivna. Eolus kommer under sommaren att påbörja försäljningsprocessen med ambitionen att teckna ett avtal med en investerare under hösten 2021. Planerad driftsättning är under 2023. För ytterligare information kontakta: Per Witalisson, VD, telefon +46 (0)70-265 16 15 Johan Hammarqvist, kommunikationschef, telefon +46 (0)720-50 59 11 Kort om Eolus Eolus Vind är en av Nordens ledande projektörer av vindkraftsanläggningar. Eolus skapar värden i alla led inom ramen för projektutveckling och drift av vindkraftsanl

Eolus acquires two fully permitted wind power projects in Sweden18.6.2021 16:15:00 CEST | Press release

Hässleholm, Sweden, June 18, 2021 Eolus has signed an agreement to acquire two fully permitted wind power projects in Sweden from RWE. The projects located in SE3 totals about 99 MW and Eolus will during summer initiate the sales process with the ambition to sign an agreement with an investor during the autumn of 2021. The projects are located in Avesta municipality (Skallberget/Utterberget) and Hedemora municipality (Tjärnäs) and totals respectively 74.4 MW and 24.8 MW. The projects are fully permitted. Eolus will during the summer initiate the sales process with the ambition to sign an agreement with an investor during the autumn of 2021. Planned commissioning is during 2023. For further information contact: Per Witalisson, CEO, +46 70-265 16 15 Johan Hammarqvist, Head of Communications, +46 720 50 59 11 About Eolus: Eolus Vind AB is one of the leading wind power developers in the Nordics. Eolus is active in the whole value chain from development of green field projects to constructi