enhttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/newslists/newslist-about-the-swedish-national-debt-office-and-the-coronavirus/60Optimizely 12 CMS - LFPChttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2021/government-guarantee-programme-for-companies-extended-until-30-september-2021/The guarantee programme entails that the Swedish National Debt Office can provide credit guarantees for loans granted to companies by participating banks and credit institutions. The programme caters primarily to small and medium-sized enterprises in Sweden that have been adversely affected financially by the pandemic but are otherwise viable. The majority of the guarantees were issued during the spring of 2020 when uncertainty about the pandemic's impact on the economy was at its peak. Although current demand for the state guarantees is limited, an extension of the Government guarantee programme for companies is a good measure because the pandemic is not over and the economy has not yet returned to normal, says Magnus Rystedt, Head of Guarantee and Financing at the Debt Office.   Statistics show that mainly smaller loans have been issued within the framework of the Government guarantee programme for companies. On 30 May 2021, lending under the programme amounted to SEK 2.6 billion across 754 loans. With the extension, companies can now apply for loans under the guarantee programme until 30 September 2021 by contacting their lender/bank. The state guarantee framework for 2021 amounts to SEK 50 billion. Since the central government guarantees up to 70 per cent of the loan amount, guaranteed loans under the programme if fully utilised could total just over SEK 71 billion. Read more here (in Swedish) Read the press release from the Government herehttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2021/government-guarantee-programme-for-companies-extended-until-30-september-2021/Tue, 15 Jun 2021 14:53:30 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2021/government-guarantee-programme-for-companies-is-extended-to-30-june-2021/The programme entails that the Swedish National Debt Office can provide credit guarantees for participating banks’ and credit institutions’ lending to companies. It caters primarily to small and medium-sized enterprises in Sweden that have been affected financially by the coronavirus pandemic but which are otherwise viable. The economic development to result from the coronavirus pandemic is still uncertain, so the need for state guarantees may remain for some time to come, says Magnus Rystedt, Head of the Guarantee and Financing Department at the Debt Office. The extension enables companies to apply for loans under the guarantee programme up to and including 30 June 2021, by contacting their lender/bank. The state guarantee framework for 2021 is SEK 50 billion. As the central government guarantees up to 70 per cent of the loan amount, loans that can be guaranteed under the programme could, if fully utilised, amount to SEK 71 billion. On 31 December 2020, lending under the programme amounted to SEK 2.6 billion divided among 738 loans. Up to the turn of the year, the hotel and restaurant industry was that which was granted the most loans, whereas the trade industry accounted for the largest volume of lending calculated in kronor. Companies with up to 49 employees accounted for over 90 per cent of the number of loans and close to 50 per cent of the volume. Read more here (in Swedish)https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2021/government-guarantee-programme-for-companies-is-extended-to-30-june-2021/Thu, 11 Feb 2021 10:00:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-provides-guarantee-for-braathens-regional-airways/The loan will run for five years, and the guarantee covers 90 per cent of the principal of the loan. Background To mitigate the economic impact of the coronavirus pandemic, the Debt Office, as mandated by the Government, is providing credit guarantees for airlines. The credit guarantees may amount to a maximum of SEK 5 billion in total, of which a maximum of SEK 1.5 billion may be for SAS AB. The guarantee for Braathens Regional Airways is the second guarantee that has been provided under the guarantee programme for airlines. The first guarantee issued was to benefit SAS AB. Subsequently, SAS AB has repaid that loan, and the Debt Office’s committment in that case has been concluded. No new guarantees can be granted under the guarantee programme for airlines after 31 December 2020. Contact Press telephone: +46 8-613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-provides-guarantee-for-braathens-regional-airways/Thu, 31 Dec 2020 10:00:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-is-prepared-for-extended-government-guarantee-programme-for-companies/The period for being able to participate in the programme is currently set to expire on 31 December 2020. We are prepared for a continuation of the Government guarantee programme for companies. The economic development resulting from the coronavirus pandemic is still uncertain. Therefore, the need for state guarantees may remain for some time to come, says Magnus Rystedt, Head of Guarantee and Financing at the Debt Office. The Government guarantee programme for companies primarily caters to small and medium-sized enterprises, and the loans are provided through the credit institutions’ normal credit process. The Government proposes that the guarantee framework be reduced by half in 2021, from SEK 100 billion to SEK 50 billion. Since the central government bears 70 per cent of the risk, this means that loans that can be guaranteed under the programme could, if fully utilised, amount to SEK 71.4 billion. On 27 November, lending under the programme reached SEK 2.4 billion divided among 684 loans. Statistics for the Government guarantee programme for companies on 30 October The most recent statistics on the distribution by sector, geography and size are from week 44 (30 October). The statistics show that the state guarantees have mainly been granted to companies within the hotel and restaurant industry, followed by companies in the trade sector. Just over 50 per cent of the companies are in Stockholm and Region Västra Götaland, and 92 per cent of them have less than 50 employees. So-called microenterprises – companies with less than 10 employees – account for 63 per cent of the number of loans granted under the programme. The credit institutions’ lending with a state guarantee to companies is distributed among different sectors as shown in the table below Industry/sector Number in % Hotel and restaurant 29% Trade 19% Transport 10% Manufacturing 8% Within legal, finance, or technology 7% Rental, travel services and other support services 6% Culture, entertainment and recreation 5% Other 16% TOTAL 100% Lending by geographic distribution is illustrated in the table below Location of domicile Number in % Stockholm 36% Västra Götaland 21% Skåne 8% Jönköping 4% Värmland 4% Dalarna 4% Jämtland 3% Norrbotten 3% Other 18% TOTAL 100% Distribution by size of the enterprises that have loans under the Government guarantee programme for companies is presented in the table below Size   of company Number in % Micro-enterprises (0-9 employees) 63% Small enterprises(10-49 employees) 29% Medium-sized enterprises (50-249 employees) 7% Large enterprises (≥ 250 employees) 1% TOTAL 100% More about the guarantee programme for companies (in Swedish)https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-is-prepared-for-extended-government-guarantee-programme-for-companies/Thu, 17 Dec 2020 08:00:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/state-credit-guarantee-to-sas-ab-now-terminated/The termination of the loan and thereby of the state credit guarantee is in accordance with the company’s recapitalisation plan. The Debt Office issued a SEK 1.5 billion credit guarantee to SAS AB on 4 May 2020. The guarantee was a joint action in which the Danish state undertook an equal guarantee commitment. SAS AB has also settled the loan that was guaranteed by the Danish government. Contact Debt Office press telephone: +46 (0) 8 613 47 01 Related content Press release 5 May 2020: Sweden provides guarantee for SAS ABhttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/state-credit-guarantee-to-sas-ab-now-terminated/Fri, 30 Oct 2020 13:30:00 GMTNewsGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/government-guarantee-programme-for-companies-is-extended-to-31-december-2020/The configuration of the guarantee programme is the same as before and entails that the Swedish National Debt Office can provide credit guarantees for loans to primarily small and medium-sized enterprises in Sweden that have been affected financially by the coronavirus but are otherwise viable. The Debt Office issues the guarantees to banks and credit institutions, which in turn issue the loans to the companies. Businesses can now apply for loans under the guarantee programme until 31 December 2020 by contacting their lender/bank. List of participating banks and credit institutions (in Swedish) The central government guarantees up to 70 per cent of the loan amount. Up to and including week 38 (18 September), 615 loans totalling SEK 2.2 billion had been granted under the government guarantee programme for companies. Contact Press telephone: +46 8 613 47 01  https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/government-guarantee-programme-for-companies-is-extended-to-31-december-2020/Thu, 24 Sep 2020 13:45:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/norwegian-air-sweden-ab-has-application-for-credit-guarantee-denied/The Debt Office is mandated by the Government to issue credit guarantees for new loans to airlines 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. The provision of guarantees shall be carried out in accordance with Ordinance 2011:211 on loans and guarantees (the guarantee ordinance) and according to certain specific conditions set out in the Government’s mandate. Norwegian Air Sweden AB (Norwegian) has applied to be able to receive a Swedish credit guarantee within the framework of the aviation guarantee scheme. The Government’s mandate stipulates that a guarantee may only be granted to the airline companies that are assessed to have been financially viable on 31 December 2019. The Debt Office’s assessment in regard to Norwegian is that as of 31 December 2019 there was a very high risk that Norwegian would not be able to fulfil its financial commitments and that the company was not deemed capable then of managing further indebtedness. Therefore, the company has not been considered financially viable as of 31 December 2019. Accordingly, Norwegian’s application has been denied. In accordance with the guarantee ordinance, the Debt Office’s decision cannot be appealed. Contact Press telephone: + 46 8 613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/norwegian-air-sweden-ab-has-application-for-credit-guarantee-denied/Tue, 18 Aug 2020 07:30:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/the-debt-offices-support-measures-to-mitigate-the-economic-impact-of-the-coronavirus/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 Contact Press telephone: + 46 8 613 47 01  https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/the-debt-offices-support-measures-to-mitigate-the-economic-impact-of-the-coronavirus/Tue, 18 Aug 2020 07:30:00 GMTNewsGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-extends-eligibility-period-for-government-guarantee-programme-for-companies/The eligibility period for the government guarantee programme for companies is set to expire on 30 June 2020. In light of the dialogue with participating banks and credit institutions, the Debt Office has made the assessment that the need for the guarantee programme will remain after 30 June. Therefore, the period for being able to participate in the programme is being extended by three months, to 30 September 2020. The lenders with which we have a dialogue confirm that many companies prioritise various forms of direct aid over committing to further loans in the current situation. Their impression is that the guarantee programme is largely expected to be in demand as a form of exit support once the acute phase has passed. In light of this, the programme is being extended,” says Director General Hans Lindblad. The decision to extend the programme is taken within the framework of the Debt Office’s mandate from the Government. Contact Press telephone: +46 8 613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-extends-eligibility-period-for-government-guarantee-programme-for-companies/Thu, 04 Jun 2020 16:35:00 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/swedish-government-debt-grows-as-virus-effects-hit-budget/The Swedish National Debt Office forecasts a deficit in the central government budget of SEK 402 billion this year and SEK 76 billion in 2021. This is a sharp weakening of the budget balance compared with the previous forecast. The Debt Office is meeting the deficit by increasing borrowing in all debt instruments. This is an exceptional situation we are in, with great uncertainty, but the Debt Office has good preparedness to increase borrowing. Central government debt will grow rapidly, but the increase will be from a low level following the surplus in recent years, says Director General Hans Lindblad. The shrinking economy and support measures put a strain on the budget The Debt Office expects GDP to fall by 6.5 per cent this year. Although there is a recovery next year, it is not sufficient for GDP to return to pre-crisis levels during the forecast period. The large deficits in the central government budget are due to both the economic downturn and the measures taken by the Government to mitigate the socio-economic consequences of the virus outbreak. The uncertainty in the forecasts is greater than normal and depends on the course of the pandemic as well as the measures to prevent infection and economic policy measures that are taken. Swedish economy and central government finances Previous forecast in parentheses 2019 2020 2021 GDP (%) 1.2 -6.5   (1.0) 4.5   (1.8) Unemployment (% of labour force) 6.8 10   (7.2) 10.7   (7.4) Budget balance (SEK billion) 112 -402   (-14) -76   (-14) Central government net lending (% of GDP) 1.2 -5.8   (0.7) -3.3   (0.3) Central government net lending (SEK   billion) 60 -276   (37) -167   (14) Central government debt (% of GDP) 22 31   (21) 31   (21) Increased borrowing in all debt types The increased borrowing requirement as a result of the virus outbreak has so far been accommodated by the use of treasury bills and other short-term borrowing. The stock of treasury bills will continue to grow and starting in June bond borrowing will also increase. The volume of nominal government bonds is first being raised to SEK 5 billion per auction in June and then progressively to SEK 6 billion. The borrowing plan for 2020 also includes issuing around SEK 10 billion in a new 25-year government bond and at least the same amount in the green bond that the Debt Office is going to issue. The assumption for the green bond is conservative, and the volume could be up to twice as large. Borrowing in inflation-linked bonds and in foreign currency also increases. Central government borrowing, SEK billion Previous forecast in parentheses    2019 2020 2021 Nominal government bonds 30 97 (51) 115 (60) Inflation-linked bonds 8 13 (9) 17 (9) Treasury bills (outstanding stock, year-end) 20 220 (55) 250 (68) Foreign currency bonds 19 105 (59) 78 (48) –  of which on-lending to the Riksbank 19 61 (59) 49 (48) –  in addition to on-lending 0 44 (0) 29 (0) Central government debt grows from a historically low level The central government debt is estimated to increase from SEK 1,113 billion at the end of 2019 to SEK 1,556 billion at the end of 2021. As a share of GDP, central government debt increases from 22 percent to 31 percent. The Maastricht debt is expected to increase from around 35 per cent of GDP in 2019 to 45 per cent at the end of next year. That measure includes the general government consolidated debt and is usually used in international comparisons. It is also the measure that forms the basis of the fiscal policy framework’s debt anchor of 35 percent of GDP. Report: Government Borrowing – Forecast and Analysis 2020:2, pdf PowerPoint presentation Contact The report will be presented at a digital press conference today, 19 May, at 10:00 a.m. Watch the recorded press conference (in Swedish) Debt Office press telephone: +46 (0) 8 613 47 01 The Debt Office is the Swedish government’s financial manager. Our mandate includes central government borrowing and debt management. The aim is to do this at the lowest possible cost while avoiding excessive risk. In the report Central Government Borrowing – Forecast and Analysis, published three times a year, forecasts are presented for the macroeconomic development and budget balance for the next two years. On the basis of these forecasts, the Debt Office calculates how much the government needs to borrow and sets up a plan for borrowing that is also included in the report.https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/swedish-government-debt-grows-as-virus-effects-hit-budget/Tue, 19 May 2020 09:30:00 GMTPress releaseReport – Central Government Borrowing Central Government BorrowingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/sweden-provides-guarantee-for-sas-ab/The loan being guaranteed is a revolving credit facility. This means that the borrower can draw on repaid credit again up to the maximum amount. The Swedish state and the Danish state guarantee up to 90 per cent of the loan amount, although to a maximum of SEK 1.5 billion from each state. The credit facility enables a liquidity injection of SEK 3.33 billion for SAS AB. The credit facility and the state guarantees expire on 20 April 2023. Background To mitigate the economic impact of the coronavirus, the Debt Office, on behalf of the Government, is providing credit guarantees to airlines. The credit guarantees may amount to a maximum of SEK 5 billion in total, of which a maximum of SEK 1.5 billion may apply to SAS AB. On 24 April 2020, the European Commission approved the framework for Sweden’s state guarantee for SAS AB. Guarantee agreements have now been entered into with the lenders and SAS AB. The guarantee for SAS AB is the first guarantee to be signed under the aviation guarantee scheme. The Debt Office has contacted all companies that are in the target group for state guarantees to airlines and is working to be able to promptly provide additional guarantees. Contact Press telephone: + 46 8 613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/sweden-provides-guarantee-for-sas-ab/Tue, 05 May 2020 08:04:32 GMTPress releaseGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/debt-office-extends-phase-in-for-subordination-of-liabilities-to-support-credit-supply/We are making this change so that it will be easier for the banks to support the credit supply in the economy in this critical situation, says Director General Hans Lindblad. New requirements are to be met by 2024 In conjunction with the introduction of the minimum requirements for own funds and eligible liabilities (MREL), the Debt Office decided that the requirement was to be met in full with own funds and subordinated liabilities (the subordination principle) no later than 1 January 2022. The decision was based on the international standard adopted by the G20 body the Financial Stability Board (FSB) in 2015. In 2019, the standard was implemented in the EU through amendments to a number of EU regulations and directives. These changes are collectively known as the banking package and entail, among other things, that subordination requirements are being imposed on banks within the EU. These requirements must be met no later than 1 January 2024. Transposition of the EU banking package into Swedish law is currently underway, and the new rules will come into force on 28 December 2020. As a result of the situation that has arisen from the coronavirus pandemic, the Debt Office is deciding to extend the phase-in until 2024. This means that Swedish banks will have more time to adapt to the requirements and that issuance of subordinated liabilities will not have to take place while the uncertainty from the coronavirus remains. This helps to alleviate the banks’ financing situation and thereby also facilitates their ability to support the credit supply to businesses and households. The Debt Office expects the banks’ issuance of subordinated liabilities to resume when conditions return to normal and that the build up towards the requirements at that point will continue at a reasonable pace. In connection with the new rules entering into force, the Debt Office will provide further details on the phase-in until 1 January 2024. Contact Press Secretary, +46 (0)8 613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/news/2020/debt-office-extends-phase-in-for-subordination-of-liabilities-to-support-credit-supply/Tue, 07 Apr 2020 08:00:00 GMTNewsFinancial stabilityCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/Government-guarantee-programme-for-companies-now-accepting-applications/The government guarantee programme for companies entails that the central government takes on most of the risk when banks and credit institutions lend to companies that are financially impacted by the coronavirus but are otherwise viable. The participation of banks and other credit institutions in the programme and, to a greater extent, their granting of loans to viable companies is crucial in order for the aid to have an effect and help more businesses manage the crisis. Starting today, banks and other credit institutions can apply to be able to utilise the central government loan guarantees. This programme will be an important element in enabling more businesses to make it through the pandemic, but the situation is urgent if we want to reduce the long-term effects of the crisis on the economy. Now it is time for the banks to apply so that loans can be granted and the money can be put to use,” says Debt Office Director General Hans Lindblad. Background: Mandate for guarantee programme for companies The Government has given the Swedish National Debt Office a mandate to provide loan guarantees for a maximum of SEK 100 billion, which will primarily go to loans for small and medium-sized enterprises in Sweden that are financially impacted by the coronavirus but are otherwise viable. The central government guarantees up to 70 percent of the loan amount. The Debt Office provides the guarantee to the credit institutions – which, in turn, issue guaranteed loans to the companies. Companies can apply for a loan with a state credit guarantee by contacting their bank. In order for the banks to be able to grant loans with a state credit guarantee, a guarantee agreement must be established between the Debt Office and each participating credit institution. As of today, it is possible for credit institutions to apply to participate in the guarantee programme. Read more: For credit institutions applying to participate (in Swedish) Contact: Press telephone: + 46 8 613 47 01https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/Government-guarantee-programme-for-companies-now-accepting-applications/Fri, 03 Apr 2020 12:15:00 GMTPress releaseFinancial stabilityGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/the-deb-office-prepares-guarantee-programme-for-swedish-companies/The guarantee programme is a measure for mitigating the negative financial effects of the new coronavirus (SARS-CoV2) and which, according to the mandate, shall mainly comprise small and medium-sized companies that are otherwise viable. The spread of the new coronavirus has led to a critical financial situation for many companies. By providing state guarantees, the central government assumes part of the credit risk involved in lending to these companies. Doing so makes it easier for companies to raise loans in order meet the strained liquidity situation. The guarantee programme entails that the central government facilitates the process for viable companies of managing the pandemic. The mandate is extensive, and the Debt Office is now working very swiftly to set up the guarantee framework and thereby support the Swedish economy”, says Debt Office Director General Hans Lindblad.  Credits for viable companies The Government’s mandate stipulates that: The credit programme is intended to cover loans to primarily small and medium-sized companies that have experienced financial difficulties because of the new coronavirus but are otherwise robust. The Debt Office provides the guarantees to the banks – which, in turn, issue guaranteed loans to the companies. Companies can apply for a loan with a state credit guarantee by contacting their bank. Companies that can receive guaranteed loans shall be non-financial companies with their main operations or domicile in Sweden. The loans concerned are new loans and credit facilities that are granted during the period 1 April 2020 up to and including 30 June 2020, with the possibility of an extension of a maximum of three months. Credits shall be able to be guaranteed by the central government up to 70 per cent of the loan amount. The credits shall amount to a maximum of SEK 75 million per company. Exceptions may be made by the Debt Office following a separate credit assessment procedure. The loans shall have a term to maturity of up to three years and can be amortisation-free throughout their maturity. Deferral of interest is offered up to the first 12 months. For more information, please refer to the Government’s mandat (In Swedish) The Debt Office is prepared State guarantees are one of the tools that the Debt Office works with on a daily basis to support the economy. As the central government’s debt manager and internal bank, and with responsibilities for financial stability, the Debt Office maintains constant readiness to be able to take further measures. Read more here (In Swedish)  Contact Do you have a company and wish to apply for a loan with a state credit guarantee? To do so, you must contact your bank. Are you a journalist and have questions about the guarantee programme? Call our press telephone: +46 8-613 47 01  https://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/the-deb-office-prepares-guarantee-programme-for-swedish-companies/Fri, 27 Mar 2020 15:30:00 GMTPress releaseFinancial stabilityGuarantees and LendingCoronavirus pandemichttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-receives-mandate-to-prepare-credit-guarantee-programme-for-swedish-airlines/In accordance with the mandate, the credit guarantees shall altogether amount to a maximum of SEK 5 billion. They are being issued to benefit companies with a Swedish licence for commercial air transport and which have their main operations or are domiciled in Sweden. As a first step, The Debt Office will now request information from the airlines that may be included. On the condition that the Riksdag and the European Commission approve the proposal, the guarantee programme will be set up as soon as possible. The Debt Office continuously works with central government guarantees. Under crisis conditions, they are one of the tools we can use to maintain financial stability and protect the economy. Now, the Debt Office is working swiftly to be able to set up a guarantee programme. Thereby, the negative economic impact of the coronavirus can be mitigated and the Swedish economy supported,” says Director General Hans Lindblad. The mandate stipulates that the issuance of guarantees shall be carried out in accordance with the Lending and Guarantees Ordinance (2011:211). New credits shall be able to be guaranteed up to 90 per cent of the loan amount. The companies’ share of the guarantee framework is determined based on the size of the company. The share of the guarantee framework for SAS AB may amount to a maximum of SEK 1.5 billion. The unique market situation resulting from the new corona virus (SARS-CoV-2) means that the companies’ financial standing and financial integrity should be assessed based on the previous year’s annual accounts. The terms of the guarantee shall be designed taking into account the risk to the central government and to assert its rights. A guarantee may not be issued unless there are terms in the guarantee contract to prevent the guaranteed provision of liquidity being used for a purpose other than that which is absolutely essential to prevent the failure of the company, such as profit withdrawals or bonus programmes for senior executives in the company. Contact If you are a representative of a Swedish airline company and have enquiries about the guarantee programme, please contact guarantees-loans@riksgalden.se ENG - Mats Lilja, presskontakthttps://www.riksgalden.se/en/press-and-publications/press-releases-and-news/press-releases/2020/debt-office-receives-mandate-to-prepare-credit-guarantee-programme-for-swedish-airlines/Tue, 17 Mar 2020 21:00:26 GMTPress releaseFinancial stabilityGuarantees and LendingCoronavirus pandemic