Covered Bond Framework Q1 2021

Nordic rates - Nordics well equipped to handle long-term consequences of COVID-19 Policy rates, % % Policy rates LO 5 4 st 3 2 % 5 Euro Area, deposit rate Norway 4 Denmark Sweden 3 2 Public balance/debt (2021E), % Fiscal Balance, % of GDP 0.0 Norway Denmark IMF World Economic Outlook, 2021E -2.5 - Sweden Portugal -5.0 Finland Austria France -7.5 Germany Ireland Belgium -10.0 Netherlands Spain -12.5 China United Kingdom 0.0 -2.5 -5.0 Italy -7.5 -10.0 1 1 -12.5 ° -15.0 -15.0 United States -1 -1 -17.5 -17.5 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 40 50 60 70 80 90 100 110 120 130 General Government Gross Debt, % of GDP 140 150 160 Comments Norges Bank now expects to start increasing rates in December 2021. However, due to its conservative assumptions regarding the roll-out of vaccines, we expect the bank to raise the policy rate in September. Policy rates in the euro area, Denmark and Sweden are expected to remain unchanged throughout the forecast period Sveriges Riksbank and the ECB launched new large-scale asset purchase programmes (QE) as a response to the COVID-19 crisis. The ECB is expected to purchase financial assets corresponding to 7% of euro area GDP in 2021, while Sveriges Riksbank's purchases amount to an expected 8% of Swedish GDP Solid public finances prior to 2020 have enabled the Nordic governments to act swiftly during the COVID-19 crisis. Large recovery packages have been announced in 2021 as well as in 2020. Fiscal deficits are expected to narrow this year and approach zero in 2022, except for Finland. The Nordics are relatively well equipped to handle the long-term consequences of the pandemic 18 Source: Nordea Markets and Macrobond Nordea

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