Rules

The Debt Office's provision of loans and guarantees is controlled by the Budget Act, the Guarantee Ordinance and the EU rules on state aid.

According to the Budget Act, the Riksdag shall decide on the purposes of and amounts involved in government guarantees and lending. A fee should be charged that corresponds to the Government's expected loss and other costs relating to the undertaking, unless otherwise decided by the Riksdag.

In certain cases, the Riksdag can decide that no fee should be charged or that the fee should be lower than the level reflecting the expected costs. The Riksdag can then allocate funds from the central government budget for the fee, in connection with the regular budget assessment.

Regardless of whether it is the guarantee holder, the borrower or the taxpayer who pays the fee via the central government budget, the money is paid into the Debt Office's account once administrative fees have been deducted. The fees must cover expected losses on the guarantees or loans. This way, the government's guarantee and lending operations are self-financed in the long term.

Clearer rules in new Budget Act

The Riksdag decided on a new Budget Act in 2011. The act contains clearer rules for government guarantees and new provisions entailing that the corresponding rules shall also apply to government lending with credit risk. The Debt Office believes that the changes entail a number of improvements to an already solid set of rules and regulations.

An ordinance regulating the authorities

Due to the arrival of a new Budget Act, the Government has decided on a new Guarantee and Loan Ordinance. This ordinance entails uniform and more detailed rules governing the work of all guarantee and credit agencies. It covers main principles for charging fees, agreement conditions, reservations, monitoring, risk management, etc.

EU rules on central government aid

In connection with issuing government loans and guarantees, we shall also apply the EU rules on central government aid. Their purpose is to limit the distortion of competition, which can arise as a result of central government aid. The issuance of government guarantees and loans must therefore, among other things, be based on a market price, which is paid by the guarantee holder or borrower.

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