Financial markets

The Financial Stability Council has had an extraordinary meeting, on 4 September, due to the liquidity problems in the market for electricity derivatives. These problems have prompted the government to propose state credit guarantees to mainly electricity producers trading in this market.

Combatting money laundering and terrorist financing is a priority for the Swedish government. This work takes place globally, on the EU level and nationally. In Sweden, several law enforcement and administrative agencies, together with large parts of the private sector, have obligations in this area.

In order to make it easier for Ukrainian refugees to access banking services, it is proposed that the current obligation for banks to offer payment accounts to all consumers should also apply to Swedish branches of foreign banks. This is stated in a memorandum that the Ministry of Finance is circulating for consultation today.

The European Council meeting of 24–25 March, one month after Russia began its aggression against Ukraine, focused on the conflict and consequences for the EU. The US President attended the meeting for talks on Thursday evening. On Friday the focus was on Europe’s strategic dependence on Russian fossil fuels, the high energy prices in the EU and the green transition.

The International Monetary Fund (IMF) will conduct a review of the financial sector and the work of the authorities on financial stability, a so-called FSAP (Financial Sector Assessment Program) in 2022. FSAPs are conducted regularly for countries with systemically important financial markets. In its report, the IMF will highlight any flaws and risks in the system and propose measures to deal with them.

The Government has adopted guidelines for the Debt Office’s management of the central government debt. No changes are made in the guidelines decision for 2022 to the steering of management compared with the preceding year.

The Government has decided to extend the government credit guarantee scheme, ‘Företagsakuten’, to support small- and medium-sized companies in financial difficulty due to the pandemic from 30 June to 30 September 2021.

The Government today proposed extending the government credit guarantee programme ‘Företagsakuten’ into 2021 so as to cover lending after 31 December. The programme is intended to facilitate lending to small and medium-sized companies affected by the pandemic. The Företagsakuten programme was launched in spring 2020 as part of the Government’s measures to support the business sector during the ongoing pandemic and builds on an agreement between the government parties, the Centre Party and the Liberal Party.

On September 24 the Government decided to extend until the end of the year the government credit guarantee programme aimed at supporting small and medium-sized enterprises that have experienced financial difficulties due to the COVID-19 pandemic. The programme was launched in the spring as part of the Government’s measures to support the business sector during the ongoing pandemic and builds on an agreement between the government parties, the Centre Party and the Liberal Party. As a result of this decision, the option for businesses to take part in the credit guarantee programme applies to loans granted until 31 December 2020.

Global warming continues regardless of the COVID-19 pandemic. Climate change will remain the defining issue of our generation. The Government is therefore proposing investments of SEK 9.7 billion in green recovery initiatives in the Budget Bill for 2021. The Government’s proposals are based on an agreement between the government parties, the Centre Party and the Liberal Party.

The Government has adopted a framework that will enable an issue of sovereign green bonds. This will be the first time sovereign green bonds have been issued in Sweden. The Swedish framework has been awarded the highest possible environmental grade by the independent reviewer.

Swedish National Debt Office is instructed by the Government to issue green bonds in 2020 at the latest. The framework differentiates between green bonds and other bonds, and will demonstrate how the proceeds from the bonds are linked to the green expenditures in the central government budget. The framework was presented 5 June 2020.

The Swedish Financial Supervisory Authority is to work to ensure that the financial system contributes to sustainable development. Climate change is central to this work as it has a major global impact and clear connections to financial stability.

On Wednesday 25 March, a proposal was presented for loan guarantees to companies adversely affected by the COVID-19 virus outbreak. The aim is to make it easier for primarily small and medium-sized enterprises to access financing.

The remit of the inquiry has been to make a comprehensive analysis of the implications of the potential participation of Sweden in the European banking union.

Today the Government adopted guidelines for the Debt Office’s management of the central government debt. The foreign currency exposure of the central government debt is to be unchanged pending the Debt Office’s analysis of the strategic foreign currency exposure of the central government debt.