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Denmark may slash borrowing in 2017 as economy rises -Nordea
May 4, 2017 / 12:14 PM / 6 months ago

Denmark may slash borrowing in 2017 as economy rises -Nordea

COPENHAGEN, May 4 (Reuters) - The Danish government may cut its 2017 borrowing requirement thanks to a larger-than-expected fiscal surplus in the first four months of the year, brokerage Nordea Markets said on Thursday.

The January-April public accounts showed a surplus of 27.4 billion Danish crowns ($4.03 billion), 18.4 billion better than the government’s initial forecast.

For the whole of 2017, the government has predicted a deficit of 20.6 billion crowns.

“The improvement of the state economy could force the government to make cuts in the announced issuance of government bonds and T-bills,” Nordea economist Jan Storup Nielsen said.

“The state seems to get much less deficit for 2017, maybe a surplus,” he added.

In December, the central bank said it planned to issue bonds worth 65 billion Danish crowns in 2017 and 30 billion in treasury bills.

The smaller deficit came as the Danish economy performed better than expected, generating more tax revenues, and in the form of higher returns on pension savings, Nordea’s Storup Nielsen said.

$1 = 6.8046 Danish crowns Reporting by Erik Matzen, editing by Terje Solsvik

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