Sweden's Debt Office sees higher government surplus in 2019

Credit: REUTERS/TT NEWS AGENCY

Sweden's Debt Office said on Tuesday it expected the government to run a much bigger surplus this year and a narrower deficit in 2020, mainly due decreased central bank borrowing needs.

STOCKHOLM, June 18 (Reuters) - Sweden's Debt Office said on Tuesday it expected the government to run a much bigger surplus this year and a narrower deficit in 2020, mainly due decreased central bank borrowing needs.

The Debt Office sees a surplus of 121 billion Swedish crowns ($12.78 billion) compared to a forecast surplus of 40 billion in February. For 2020 it forecasts a deficit of 19 billion compared to 30 billion in February.

"The change this year is mainly due to the Riksbank's decision to reduce the foreign currency reserve by paying back loans to the Debt Office," the Debt Office said in a statement.

The Debt Office postponed planned increase in the issuance volume of government bonds with borrowing remaining at 30 billion crowns on an annual basis in 2020.

($1 = 9.4647 Swedish crowns)

(Reporting by Johan Ahlander; Editing by Simon Johnson)

((johan.ahlander@thomsonreuters.com; +46 707 211027; Reuters Messaging: johan.ahlander.reuters.com@reuters.net))

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