Central government payments gave a deficit in October

5 November 2010 - Press release

Swedish central government payments resulted in a deficit of SEK 16.6 billion in October. The Debt Office's forecast was a deficit of SEK 18.1 billion.

Tax revenue was SEK 3.6 billion higher than calculated and disbursements by authorities were altogether SEK 4.2 billion lower than forecasted.

Interest payments on central government debt were SEK 3.9 billion lower than forecasted. The difference is mainly explained by lower capital losses and foreign exchange losses than expected. The reason behind lower capital losses is that exchanges of inflation-linked bonds that were planned in October already took place in September. For more information see the Debt Office's press release regarding the outcome for Swedish central government payments in September.

The Debt Office's net lending was SEK 10.1 billion higher than calculated. This is mainly explained by repo transactions* by government agencies.

For the twelve-month period up to the end of October 2010, central government payments resulted in a deficit of SEK 28 billion. Central government debt amounted to SEK 1,072 billion at the end of October.

The outcome for November will be published at 9.30 am on 7 December 2010.

New revised forecasts for 2010 and 2011, along with our first forecast for 2012, will be published at 9.30 am on 16 November 2010.


Further information can be obtained from:
Eric Morell, phone +46 8 613 47 71


* Repo transactions by government agencies mean that they sell government securities with a repurchase agreement. The payment of the repos can be deposited in an account at the Debt Office. If the total volume of outstanding repos change during the month compared to the previous turn of the month it will affect the outcome of the borrowing requirement. They can also buy bonds with a resell agreement. If they use the payment when they sell a bond with a repurchase agreement to buy a bond with a resell agreement the borrowing requirement will not be affected. We make forecasts of the repo transactions on the basis of the information we receive from the government agencies. However, the forecast are very uncertain since the government agencies may alter their plans on a short notice.