Danish government debt rises to kr. 235 billion, AAA rating maintained

In 2025, central government debt increased by kr.

18 billion, reaching a total of kr.

235 billion, which corresponds to 7.6 percent of Denmark's GDP.

Despite this increase, the government's interest costs remained low at kr.

5 billion.

Danmarks Nationalbank, managing the central government debt on behalf of the Minister of Finance, maintained the highest possible credit rating, AAA, with a stable outlook.

This period saw several key market activities, including the opening of a new 10-year government bond in February and the issuance of a 2-year dollar loan under the government's EMTN programme in June.

A notable international distinction was achieved in September with the issuance of Denmark's first green government bond under the European Green Bond Standard (EuGB Standard), highlighting a commitment to sustainable finance.

The management of central government debt remained focused on consolidation to ensure a well-functioning and liquid government securities market, thereby reducing overall interest costs.

Robust risk management practices continued to stabilize the government's interest rate and market risk throughout the year.

States typically incur debt due to various factors such as economic conditions, the refinancing of existing obligations, or public investment costs.

Given the strong performance of the Danish economy, the government is well-positioned as it enters 2026, providing a solid foundation for continued effective central government debt management.