The Debt Office’s guidelines proposal for 2013–2016

Press release 13 July 2021

The Debt Office proposes additions to two areas in this year’s proposal. They are related to position taking and management of financing risks. The objective is to further formalise risk management and positions in foreign currency.

The Debt Office achieves its goal of cost-effective central government debt management. This is evident from the government's latest evaluation of the central government's borrowing and debt management during the period 2007–2011. The external evaluator employed by the Ministry of Finance as support for the evaluation, deems the Debt Office's business to be running well.

Small changes to this year's proposal

Historically, the Debt Office and its board have only allowed positions in markets where the market risk can be managed through liquid and otherwise well-developed financial instruments.

This year we propose that practices are formalised through the following additions to the guidelines:

Positions can only be taken in markets which allow for the market risk to be managed through liquid and otherwise well-developed derivative instruments, and which potentially are a loan currency within the framework of debt management.

In addition, we want to clarify the guidelines with the following item under the heading Cost and Risk:

The Debt Office shall observe refinancing risks in its management of the central government debt.

The proposal does not mean any practical changes to the Debt Office's management of the central government debt. When evaluating the business, it will be our task to account for how we have taken the refinancing risks into consideration.

The government makes decisions on new guidelines in November

Every year, the Debt Office submits proposed guidelines to the government for the management of the central government debt. It is to take place no later than 1 October in accordance with the Budget Act. The Riksbank is then allowed to comment before the Government decides on the new guidelines by 15 November at the latest.

For more information contact:
Linda Rudberg, Press Officer, +46 8 613 45 38

Central Government Debt Management - Proposed guidelines 2013-2016