Sweden sometimes grants loans directly to individual countries. The Government may assign the Debt Office to handle these loans, after authorisation by the Riksdag (the Swedish Parliament).
The Debt Office is currently in administering one such loan, to Ireland. Recently we also administered a loan to Iceland, and in 2010 and 2011 we administered a loan facility agreement with Latvia, which the country did not make use of.
Loan to Ireland
In May 2012 Sweden and Ireland signed an agreement on a loan of a maximum of EUR 600 million. The Government approved the loan after authorisation from the Riksdag, and instructed us to disburse and administer the loan.
Sweden's loan to Ireland is granted on condition that the country follows the programme set up by the International Monetary Fund and the EU in connection with its financial assistance programme for Ireland. The United Kingdom and Denmark are also lending money to Ireland on condition that the country complies with the financial assistance programme.
The loan to Ireland was disbursed in four tranches, each of EUR 150 million. The disbursements were made in 2012 and 2013, after approval of the relevant reviews of Ireland's financial assistance programme by the International Monetary Fund and the EU. The loan from Sweden is to be completely repaid by the end of 2022.
Loan to Iceland
The Debt Office disbursed the first tranche of a loan to Iceland in late 2009. Earlier the same year the Riksdag had authorised the Government to approve a loan from Sweden to Iceland. The loan was a supplement to the International Monetary Fund's coordinated action to support the Icelandic economy.
The loan from Sweden was granted jointly with loans from Norway, Denmark and Finland. Disbursements of the loans from the Nordic countries were to be made on condition that Iceland met the requirements set up by the International Monetary Fund under the programme. The Faroe Islands and Poland also granted loans to Iceland.
Iceland repaid the loans from the Nordic lenders in full in July 2014.
The loan agreement of EUR 495 million between the Swedish and Icelandic governments was signed in July 2009. The Debt Office was instructed to issue and administer the loan, which was to be disbursed in four tranches.
Under the original agreement Iceland could request disbursement of the loan up to the end of 2010. In August 2011 the parties agreed to extend the availability period to the end of 2011. By the end of 2011 the entire loan amount had been disbursed. The loan was to be completely repaid at the end of 2021.
In the first half of 2012 Iceland made two early repayments on the loan from Sweden, of EUR 102 million and EUR 188 million respectively. Iceland repaid the remaining outstanding loan amount in July 2014, following a successful public issuance of euro-denominated bonds.
Loan to Latvia
The Nordic countries and Estonia undertook to jointly extend credit to Latvia in 2010, totalling EUR 1.9 billion. Sweden's share of the loan was a maximum of EUR 720 million. When the agreement lapsed in December 2011 Latvia had not utilised any of the credit facility.
The Ministry of Finance also provides information on Sweden's lending to other countries.