Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Sweden to issue more debt as Riksbank stresses crisis's depth

Share this article

15:15 CET+01:00
The Swedish government on Thursday asked the National Debt Office (Riksgälden) to sell as much as 200 billion kronor ($25 billion) in T-bills next year, as the head of the central bank emphasized the severity of the current financial crisis.

“The global financial system has been shaken to its foundations,” said Riksbank governor Stefan Ingves in a speech to the Riksdag's committee on finance on Thursday.

“Even countries like Sweden, far from the centre of the crisis, are now tangibly affected by the crisis. The Riksbank, other authorities, the Riksdag and the government are taking forceful measures to minimize the damage to the economy as a whole."

At the same time, the government left its recommendation for state debt sales unchanged and advised the Debt Office to steer towards issuing up to 200 billion kronor in debt next year, with 15 percent in foreign currencies, 25 percent in inflation-linked instruments and 60 percent in nominal kronor debt.

The following maturities were recommended: 0.125 of a year for foreign currency debt, 10.1 years for inflation-linked instruments and 3.5 years for nominal kronor issues.

"In light of the lingering financial unrest, it is the government's view that the Debt Office should continue to have a mandate to issue extra T-bills next year in order to further stability," said Financial Markets Minister Mats Odell

"It is for the benefit of both market participants and all the home loan borrowers in the country," Odell said in a statement.

Odell said government finances were strong despite the unrest.

Consolidated central government debt amounted to 1.118 trillion kronor as of October 31st. This included 108 billion in extra T-bill issues.

Get notified about breaking news on The Local

Share this article

Advertisement
Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement