Press release from Ministry of Finance

Guidelines for central government debt management in 2022

Published

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 central government debt has decreased as a share of GDP (gross domestic product) in 2021 after increasing temporarily in 2020. The recovery of the economy is expected to be faster than previously forecast and developments in 2021 are expected to involve a return to the earlier trend of a decreasing central government debt.

The composition of the central government debt is to be steered towards:

  • The term to maturity of the central government debt is to be steered towards 3.5–6 years.
  • Inflation-linked krona debt is to be 20 per cent of the central government debt in the long term.
  • The foreign currency exposure is to be unchanged.
  • Nominal krona debt is to make up the remaining share of the central government debt.

The government now gives the Debt Office the possibility to plan for issuing additional green bonds

The Swedish sovereign green bonds are covered by the general guidelines for the management of the central government debt. To enable the Debt Office to issue additional green bonds, a decision by the Government is needed on which green expenditures are to be considered eligible in the central government budget. The government intends to adopt such a list of expenditures in early 2022, and thereby give the Debt Office the possibility of issuing additional green bonds.

Background

The objective of central government debt policy is for the central government debt to be managed so as to minimise the cost of the debt over the long-term, while taking account of the risk in its management. The debt has to be managed within the framework of monetary policy requirements.

Responsibility for the objective is divided between the Government and the Debt Office. The Government steers the overall level of risk in its annual guidelines’ decisions, while the Debt Office is responsible for conducting borrowing and management within the framework of the guidelines and in accordance with the objective. This basis for this decision includes the National Debt Office’s proposed guidelines.

Achievement of the objective is reported to the Riksdag (Swedish Parliament) in a government communication every other year. The latest communication was presented to the Riksdag by the 16th of April 2020. In the budget bill for 2022 a preliminary report of the achievement of the objective was reported.

Press contact

Daniel Dickson
Press Secretary to Minister for Financial Markets and Deputy Minister for Finance Åsa Lindhagen
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 820 84 89
email to Daniel Dickson