Authorisations to borrow in 2012

The Ministry of Finance today presents a proposition to the Storting (Parliament) concerning authorisation for central government borrowing in 2012.

The non-oil fiscal budget deficit is financed by transfers from the Government Pension Fund Global. The Government’s gross financing requirement, including government debt amortization, net lending and net equity investments, will be covered by domestic borrowing.

According to the proposed 2012 Fiscal Budget, the Government’s gross financing requirement is NOK 22 billion in 2012. In addition, the proposed changes to export financing under the CIRR-scheme, cf. Prop 34 S (2011-12), will increase the Government’s need for borrowing by about NOK 30 billion.

The Ministry proposes authorisation to raise NOK 70 billion in new long-term domestic loans. Maximum outstanding of short-term market instruments (Treasury bills) is proposed at NOK 250 billion. The T-bills used in the Government Swap Facility are included in this authorisation.

In order to maintain a well-functioning and efficient market for government securities, long term borrowing is smoothed out over the years. In December 2011, the Ministry of Finance and Norges Bank will publish an auction calendar for the issuance of government bonds and Treasury bills in 2012.