Debt Office receives mandate to make preparations for issuing green state credit guarantees
News 24 November 2020
In conjunction with its presentation of the Budget Bill for 2021, the Swedish Government proposed state credit guarantees for green investments. The state guarantees are intended to enable more large-scale industrial investment projects in Sweden that contribute to achieving the goals of the environmental objectives system and the climate policy framework.
The Swedish National Debt Office is responsible for managing central government finances, and the Government can also mandate the agency to issue state guarantees.
“Providing state guarantees is part of the Debt Office’s ongoing responsibilities. We have now begun to explore the way in which to set up this programme”, says Magnus Rystedt, head of the Guarantee and Financing Department at the Debt Office.
The investments that may be eligible are considered to be of such a scope as to bear the cost of the guarantee fee reflecting the risk. The proposal will be formed so that the procedure is compatible with EU regulations on state aid.
The credit guarantees will be evaluated on the basis of technology-neutral criteria and are proposed to be issued over several years starting the first half of 2021. During 2021, it is proposed that the credit guarantees amount to a maximum of SEK 10 billion. A guarantee framework of SEK 15 billion is estimated for 2022, and of SEK 25 billion for 2023.
Read more about the assignment on the Government's website (only avaliable in Swedish)