Pressinformation Tokyo 7-8 maj 2012
Published on: Mar 4, 2016
Transcripts - Pressinformation Tokyo 7-8 maj 2012
Sweden I NTR O D U CTI O N by th e Head of D ebt Management, Th omas O lofsson a safe haven in a challenging worldThis is a presentation of the Kingdom Bonds are our core government securities and represent close to 80 per cent of the debt. Thus, theof Sweden and The Swedish National government bond market is our most important finan-Debt Office. cial source. Liquidity in this market is a top priority for us. Borrowing in other instruments has been replacedWe are responsible for the management of public debt. by government bonds. We have the possibility to offerOur goal is to minimize long-term costs without taking exchanges to increase the volume of our 2-, 5- and 10-excessive risks. year on-the-run treasuries. Sweden is at this moment borrowing at record low Our funding plans have a total focus on issuingyields in the bond market and has become somewhat of 10 year government bonds to support liquidity anda safe haven. Few sovereigns have lower yields. infrastructure. The issue volume in government bonds is Strong government finances, in contrast to most of forecasted at SEK 50 billion in 2012. During 2013 weEurope, is one reason. Debt to GDP is close to 30 per plan to borrow SEK 53 billion.cent and central government finances will be close to I hope that this brochure will be a valuable additionbalanced over the next two years. We forecast a deficit to the publications available on the Swedish governmentof SEK 11 billion this year, turning into a surplus of SEK bond market. If you would like more information or have3 billion in 2013. any questions, please feel free to contact the Debt Office. It is also important to note that Sweden has its own You will find a list of contacts on our website:currency and its own central bank. www.riksgalden.se/en/borrowing/Contact/ New investors are continuously entering the Swedishgovernment bond market and liquidity is exceptional Thomas Olofsson,compared to its size. Liquidity is also supported by the Head of Debt ManagementDebt Office’s security lending commitment. twitter: @olofssonthomas
Sweden one of the last countries left with AAA-ratingThe European sovereign debt crisisis an ongoing financial crisis. Debt structure, nominal amountThe financial crisis has made it difficult or impossible Debt structure, nominal amountfor some countries in the euro area to re-finance theirgovernment debt without the assistance of third parties. Foreign currency Sweden, on the other hand, has a long-standing including swapscommitment to fiscal discipline, which has kept the 23.1 %general government debt burden at a moderate level. SEK bonds andAs a consequence, the Swedish government’s balance T-bills includingsheets compare exceptionally well to its AAA-rated pe- swaps 52.9 % Retail market 5.1 %ers, providing the government with a substantial bufferin the event of further economic shocks. Debt to GDP is close to 30 per cent and total debt SEK inflation-linkedamounted to SEK 1134.5 billion on 31 January 2012. bonds 18.8 % Central government finances will be close to balan-ced over the next two years and we forecast a deficit ofSEK 11 billion this year, turning into a surplus of SEK 3billion in 2013.
Guidelines for central government debt managementThe overall objective guiding central The debt policy objectives and procedures are In the guidelines decision, the Government exercises stated in the Swedish Budget Act. general control over the expected cost and risk ofgovernment debt management is The Government is to make a decision no later the debt. The Debt Office is responsible for theto minimize its long-term costs than 15 November each year on guidelines for the strategic decisions taken within the framework of thewhile taking risks into account. management of the central government debt. guidelines and for their implementation in the opera- tional management of the debt.
Media Coverage of the Swedish National Debt OfficeBo Lundgren played aleading role in preventinga collapse of the Swedishbanking sector when aproperty bubble burst inthe early 1990s.Between 1991 and 1994, Mr. Lundgrenwas Minister of Fiscal and FinancialAffairs; as such, he was responsible formanaging the severe banking crisis thatfollowed. In the wake of the financial crisis,many countries are now examiningSweden’s experiences with great Bo Lundgren, Swedish Nation Debt Office director general provides perspectiveinterest. on what Europe and the rest of the world can learn from the ”Swedish model” of combating a financial crisis.
Sweden The Kingdom of Sweden in briefGeographical area: 450,000 km² (174,000 sq mi)Population: 9.5 millionCapital: Stockholm (urban population app. 1.4 million)Form of government: Constitutional monarchy, parliamentary democracyParliament: The Riksdag, 349 seats in one chamberCurrent government: Conservative/Liberal coalitionNext election year: 2014Dominating religion: Evangelical LutheranLife expectancy: Men 80 years, women 84 yearsMost important export goods: Electronic and telecom equipment, machinery, passenger cars, trucks, paper, pharmaceuticals, iron and steelCurrency: Kronor (SEK)GDP (2011): USD 532.8 billionMember of EU: Since 1995Member of EMU: NoMember of NATO: No