Press release 16 March 2020
The Swedish National Debt Office is well-prepared to meet the increased borrowing requirement resulting from the Government’s crisis package to mitigate the economic impact of the virus outbreak. The crisis package is funded initially by the Debt Office increasing short-term borrowing.
This is in line with the Debt Office’s usual strategy of first increasing the short-term borrowing and then gradually adjusting the long-term borrowing as needed. This means that the previously communicated plan for bond borrowing applies until further notice.
The Debt Office has great flexibility and capacity within liquidity management for handling the disbursements that result as the crisis package is utilised. We also have scope for increasing bond borrowing in the longer term if necessary, but for now our plan is unchanged, says Anna Sjulander, Head of Funding at the Debt Office.
Within its liquidity management operations, the Debt Office can borrow large amounts in the short term by issuing securities with a short maturity in both kronor (treasury bills) and foreign currency (commercial paper). The Debt Office also currently has cash assets to use.
In terms of the long-term bond borrowing, the Debt Office retains the current plan for the time being, which was published in February. After the record-low levels in recent years, there are good conditions for increasing the issuance volume in all government securities if necessary.
About SNDO's issuance plan
The Debt Office is the central government’s financial manager. Our mandate includes central government borrowing and debt management. The objective is to do so at as low a cost as possible while keeping risk to a minimum. 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 establishes an issuance plan that is also presented in the report. The most recent borrowing report was published on 18 February 2020.
The Debt Office's operations shall be characterized by an openness to the public and the media. The right of access to official business is a cornerstone of Swedish democracy.
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