Policy and regulations

The overall objective of debt management is to minimise the long-term costs of the debt while avoiding excessive risk. The Riksdag has laid down this objective in law.

Central government debt is managed in accordance with guidelines determined annually by the Government, based on our proposals. The guidelines establish how central government debt is to be split between different kinds of debt and the average maturity it must have. We achieve the objectives for debt shares and maturities – our benchmark – both by adapting borrowing and by using derivative transactions.

Most of central government debt (approximately 75 per cent) comprises loans in the capital market and is made up of nominal and inflation-linked government bonds as well as bonds issued in foreign currencies. Just over five per cent is raised in the retail market and the remainder are money market loans, mainly T-bills.

Policy and market commitments

Our policy is to be open and transparent about how we plan our borrowing. We publish forecasts for the net borrowing requirement and funding three times a year. Borrowing in kronor follows a predictable schedule. We endeavour to achieve a broad international investor base to keep our funding costs as low as possible. 

Active positioning

The Debt Office is also engaged in active foreign currency management. The objective of active positioning is to reduce the cost of central government debt by increasing exposure in the currencies and at the maturities that provide the lowest costs.