Guarantees for providing capital

Commissioned by the Riksdag and the Government, the Debt Office can undertake to inject capital into a business in the future, under certain circumstances. This type of guarantee is becoming increasingly rare in our portfolio.

In addition, we are responsible for paying the guarantee capital that Sweden provides to multilateral financial institutions such as the Nordic Investment Bank.

Guarantee fund

A guarantee fund means that the central government undertakes to provide capital for companies in a vulnerable position. This obligation is for a fixed term and amount.

On the Government's commission, the Debt Office has granted guarantee funds to Svenska Skeppshypotekskassan, which provides financing for Swedish shipping companies and foreign shipping companies with a significant Swedish interest or influence. The undertaking amounts to SEK 350 million and runs until 2025.

Capital adequacy guarantee

Capital adequacy guarantees are similar to guarantee funds, but are not limited to a fixed term or amount. It is difficult to assess the risk of obligations without any form of limit, and they are increasingly rare in our portfolio.

Today, only one liquidity and capital adequacy guarantee remains, for the government-owned company Arlanda Infrastructure AB . The guarantee is in fact given by the Swedish Transport Administration, but any payouts are made by us. We will then be  compensated by the Swedish Transport Administration.

Guarantee capital for multilateral financing institutions

Sweden's membership in international financial institutions such as the Nordic Investment Bank consists of proprietary capital. The proprietary capital can be paid directly to the institution, or provided in the form of guarantee capital. The guarantee capital involves the Swedish Government committing to inject a certain amount when the institution requests it.

Responsibility for management of the guarantee capital lies with the respective ministry. In the event that the Swedish Government is required to pay guarantee capital, this is done by the Debt Office. We have a special reserve for this purpose, which as per government decision has an unlimited credit. When making payments from the reserve to an institution, the paid amount is deducted from the appropriations for the respective ministry's area of responsibility.

Further information on Sweden's membership in international financial institutions can be found on the Government's website.