Guidelines for central government debt management in 2014

14 November 2013

Today the Government adopted guidelines for the management of the central government debt. The decision is largely in line with the Swedish National Debt Office’s proposal. The debt shares and interest rate refixing periods for central government debt remain unchanged.

Every year, the Government decides on guidelines for the Debt Office's management of central government debt. The Government primarily steers the expected cost and risk of the central government debt by adopting guidelines for the composition and maturity of the debt.

The composition of the central government debt:

  • Foreign currency debt: 15 per cent
  • Inflation-linked krona debt: 25 per cent
  • Nominal krona debt: 60 per cent (residual)

Guidelines for the maturities of the central government debt:

  • Foreign currency debt: 0.125 years
  • Inflation-linked krona debt: 7-10 years
  • Nominal krona debt, instruments with maturities up to 12 years: 2.7-3.2 years

The Government chooses to wait to change the model for steering the currency debt. The Debt Office has proposed that the currency debt may be up to 15 per cent of the total central government debt, instead of having a benchmark of 15 per cent as at present.

Before considering any change, the Government wants to wait for the findings of the Review of Central Government Debt Policy, as well as a decision on the report on the Riksbank's financial independence and balance sheet.

The mandate for positions in foreign currencies is reduced from SEK 450 million to SEK 300 million, measured as daily Value-at-Risk with a 95 per cent probability.

For more information, please contact:
Magdalena Belin, Head of Analysis 08 613 52 28

Guidelines for central government debt management 2014