Debt management guidelines are unchanged – the Debt Office is given preconditions for additional green bond issuance

News 4 November 2021

The Swedish Government has decided on guidelines for managing the central government debt. The Government intends to make a decision in the beginning of 2022 that will give the Swedish National Debt Office the possibility of issuing additional government green bonds.

The guidelines establish, among other things, the composition and term to maturity that the central government debt shall have. 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 order to for the Debt Office to be able to issue additional green bonds, the Government must first decide on what green expenditure is considered eligible in the central government budget. The Government intends to make this decision in the beginning of 2002, thereby enabling the Debt Office to issue additional green bonds. The guidelines also state that the Government’s assessment regarding the foreign currency exposure is that it should remain unchanged pending the Debt Office’s analysis of the debt’s strategic currency exposure.

Guidelines for 2022 – summary

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

The Government’s press release and guidelines

The Debt Office’s proposed guidelines