The national debt - how it is managed

The Swedish National Debt Office funds and manages loans on behalf of the state. The goal is to minimise the cost of the state's debt in the long term without the risk of such management being too high. The central government debt (national debt) consists of nominal and index-linked debt in Swedish kronor and foreign currency debt.

Each year, the Government determines the overall guidelines for national debt management. The Debt Office is required to submit proposals for guidelines to the Government in advance.

The Government's guidelines for national debt management determine such things as the term of the loan (the time until the debt reaches maturity) and how much the Debt Office is to borrow in Swedish kronor and in foreign currency. The guidelines also establish how the evaluation of funding and debt management is to be carried out.

In April of each year, the Government evaluates how the Debt Office has handled debt management during the previous year. The evaluation is presented to the Riksdag in the form of a Government communication. The Riksdag's Parliamentary Committee on Finance discusses the evaluation and takes a decision on a joint assessment. The Debt Office can then study the Riksdag's decision and takes account of these views when drafting proposals for guidelines for the coming year.

In brief, work with the guidelines is as follows:

1. The Debt Office submits proposed guidelines to the Government.
2. The Government takes a decision on guidelines for the next three years.
3. The guidelines start to apply.
4. The Debt Office reports to the Government in its annual report.
5. The Government evaluates the activities and reports to the Riksdag.
6. The Riksdag evaluates national debt management.
7. The Debt Office reviews the Riksdag's views in its proposed guidelines for the next year.