Authorisations to borrow in 2011

The Ministry of Finance today presents a proposition to the Storting (Parliament) concerning authorisation for central government borrowing in 2011.

The surplus in the Fiscal budget is substantial, and corresponds to the transfers to the Government Pension Fund Global. The Government has nevertheless a gross borrowing requirement because government debt amortization, net lending to state entities and net equity investments are to be covered by borrowing. The central government also needs sufficient cash reserves to cover the large seasonal fluctuation in tax payments.

The government’s gross financing requirement for 2011 is NOK 59.5 billion. The financing requirement is planned to be covered by borrowing in the domestic market, and by drawing on cash reserves.

There is a need for flexibility in the government's borrowing program in order to adjust to changes during the year. The Ministry proposes authorisation to raise NOK 50 billion in new long-term domestic loans. Maximum outstanding of short-term market instruments (Treasury bills) is proposed at NOK 300 billion. The T-bills used in the Government Swap Facility are included in this authorisation.

In the proposition, the Ministry also informs the Storting that it will consider a recommendation from Norges Bank to offer participants in the Government Swap Facility early termination of agreements.

In December 2010, the Ministry of Finance and Norges Bank will publish an auction calendar for the issuance of government bonds and Treasury bills in 2011.