Stability fund

In 2008 the Riksdag decided to establish a stability fund to finance the measures taken by the government to support the financial system. Banks and other credit institutions pay an annual stability fee to the fund, which consists of an account with the Debt Office. The stability fee will be replaced by a new resolution fee in 2016.

If the state needs to provide guarantees or to give other support to credit institutions under the support act, this is financed using funds from the stability fund. When the fund was set up, the government provided SEK 15 billion through a special appropriation. The stability fund has an unlimited right to borrow from the Debt Office if the resources in the fund are insufficient.

Transfer to new resolution reserve

Some changes were made to the design and function of the stability fund when the new Precautionary Support Act entered into force on 1 February 2016 and as a result of the new EU rules on crisis management being introduced in Sweden. Some of the balance of the stability fund was then transferred to the new so-called resolution reserve.

The stability fund will remain in place in order to finance measures taken under the proposed act on precautionary support.

Institutions pay an annual fee

The annual stability fee is 0.036 per cent of a base that consists of the bulk of the institution's debts. In addition to the annual stability fee, fees from individual support actions have also been placed in the fund. The fees paid by the institutions that had loans under the state guarantee programme during the financial crisis that began in 2008 are examples of such fees.

Assets, such as shares, received by the state as a result of financial support have also been placed in the stability fund. When the support has been repaid or the assets sold, the proceeds have been placed in the fund.

Previous state holding of shares in Nordea

The stability fund also included the shares in Nordea acquired during the financial crisis in 2009 using the fund's resources. They were acquired when the government participated in the bank's new share issue via the capital injection programme. Following a decision by the government all these shares were sold in 2013. The sale produced a surplus of SEK 19 billion for the fund, corresponding to an annual return of 44 per cent.