News 18 August 2020
To mitigate the economic impact of the COVID-19 pandemic, the Swedish National Debt Office has been mandated to provide state credit guarantees within two guarantee schemes: the Government guarantee programme for companies, under which SEK 2.1 billion had been lent up to 31 July in 539 loans, and the guarantee programme for airlines under which one guarantee has been issued.
The assignments were given by the Government in March, with some subsequent amendments. Here, we present a summary of activities carried out under the programmes up to and including 31 July 2020.
The Government guarantee programme for companies – credit guarantees to small and medium-sized enterprises
The Government has mandated the Debt Office to provide state credit guarantees for a maximum total of SEK 100 billion to benefit in particular small and medium-sized companies that have been financially impacted by the COVID-19 pandemic but are otherwise viable. The central government guarantees up to 70 per cent of the loan amount.
The Debt Office issues the guarantees to credit institutions that in turn issue loans to the companies. The companies can apply for loans under the guarantee programme by contacting their lender/bank.
Read more about the Government guarantee programme for companies and other terms and conditions here (in Swedish)
Status as of 31 July 2020
- Guarantee framework according to mandate: SEK 100 billion
- Allocated framework amount – funds made available for lending, of which the central government's guarantee commitment is 70 per cent: SEK 39 billion
- Value of total loans paid out: SEK 2,064 million
- Total guaranteed amount (70 per cent of loan amount): SEK 1,445 million
- Number of participating banks and other credit institutions: 71 credit institutions
- Number of loans granted: 539 loans granted
State credit guarantees to airlines with operations in Sweden
The Government has mandated the Debt Office to provide credit guarantees for new loans to airline companies that, on 1 January 2020, had a Swedish licence to conduct commercial aviation operations and that have their main operations or are domiciled in Sweden.
A guarantee may only be granted to a company that was not in financial difficulty as of 31 December 2019 and is deemed to have been financially viable at that particular time.
Read more about the guarantee programme for airlines and other terms and conditions here (in Swedish)
Two airline companies have applied to be able to receive a state credit guarantee within the framework of the guarantee programme for airlines. One application has been approved. One application has been denied because the company is not deemed to have been financially viable as of 31 December 2019.
Status as of 31 July 2020
The guarantee framework according to the Government's mandate: SEK 5 billion, of which one guarantee to SAS may amount to a maximum of SEK 1.5 billion.
Number of applications received: 2
- Of which approved: 1 (SAS AB)
- Of which denied: 1 (Norwegian Air Sweden AB)
Guarantees issued: SAS AB, SEK 1.5 billion
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