Politics

The Faroese Government borrows 1.6 billion DKK

On Tuesday, the Government of the Faroe Islands raised nearly 3 billion DKK from bond issuance to pay debt and to finance an expected loss on the national budget for 2020 and 2021 due to the corona crisis.

With the bond issuance, the national debt increased by 1.6 billion DKK. It was successful, oversubscribed and revealed a significant interest in the Faroese treasury bonds. Aside from Faroese banks, Danish banks and pension funds showed interest in the bonds.

About half of the funds will be spent to pay the debt, which is due on 11 June and the other half is reserved for financing an expected loss on the national budget for the next two years.

The total national treasury bonds debt amounts to 5.3 billion DKK. The net debt is approximately 2.3 billion DKK, which corresponds to 11 percent of the GDP.

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