The central government’s borrowing and debt management is governed at the general level by the Budget Act and through annual guidelines issued by the Government. The aim is to borrow at as low a cost as possible over the long term, while limiting risks.
The annual guidelines set up the framework for the composition and term to maturity of the central government debt. This provides an overall risk level to steer towards. The Government sets these guidelines following a proposal from the Debt Office and consultation with the Riksbank. Based on the guidelines, the Debt Office also establishes an internal financial and risk policy. The Debt Office's actions in the market are then governed by this framework.
Transparency and predictability
The Debt Office is, above all, able to impact the cost of the central government debt by proposing a well-balanced debt portfolio in the guidelines and by striving to make the Swedish government securities market as attractive to as many investors as possible. We do this primarily by:
- ensuring transparent and predictable borrowing
- promoting liquidity and market infrastructure.
The Debt Office publishes forecasts for the borrowing requirement three times a year in the report Central Government Borrowing – Forecast and Analysis. This report also shows how we plan to use different debt instruments. The plan is based on an established borrowing policy.
A system of primary dealers ensures a well-functioning infrastructure and promotes liquidity in the Swedish government securities market. The Debt Office contributes indirectly to the function of the market through various market-supporting facilities.