Long-term borrowing increases gradually

15 November 2012 - Press release

Today the Government has decided on guidelines regarding the central government debt management for the coming years. The decision is largely in line with the Swedish National Debt Office’s proposal. However, the Government raises the benchmark for the outstanding stock of long-dated bonds from SEK 60 billion to SEK 70 billion. The composition and maturity of the debt is otherwise kept unchanged.

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 benchmark for the outstanding stock of nominal bonds with a maturity longer than 12 years is raised from SEK 60 billion to SEK 70 billion. The current stock of long-dated nominal bonds amounts to SEK 53 billion. The benchmark is defined as a long-term target and borrowing will increase gradually, based on the demand for bonds with longer maturities. We follow the market closely and at times when demand is strong we may issue long-dated bonds in our auctions. We may also introduce a new 30-year nominal bond to meet investors' requirement for long duration. Further details on how we plan to borrow in long-dated bonds will be presented in our report Central Government Borrowing - Forecast and Analysis on 20 February next year.

For more information, please contact:

Maria Norström, Head of Funding 08 613 46 35

Magdalena Belin, Head of Analysis 08 613 52 28

Guidelines for central government debt managementGuidelines for central government debt management, pdf