Auction volumes in government bonds unchanged after sale of state assets
(Thomson Reuters ONE) -
A total of SEK 20.4 billion from the sale of shares in Nordea and Vectura will,
in the near term, be handled in liquidity management and by lower volumes in
Treasury bills. The Debt Office will gradually use the income to repay maturing
loans. Supply of government bonds continues to be stable.
The Debt Office will maintain the auction volume of government bonds at SEK 3.5
billion in 2014 as well. Borrowing in foreign currency will decrease. The
revenue from the sales transactions will reduce the funding requirement and the
national debt. Primarily, this is an effect of the capital contribution the
Swedish state made to Nordea during 2009.
- The Swedish model of handling banks in distress has proven to be successful.
Swedish taxpayers took a risk in financing Nordea. Now part of the holding has
been sold and given a profit of 2.8 times the money. The total surplus from the
government actions in supporting Swedish banks in the aftermath of the 2008
crisis amounts to SEK 20 billion, says Hans Lindblad Director General of the
Swedish National Debt Office.
Stability Fund
The governments holding in Nordea is divided into two parts. Just under half is
held by the Ministry of Finance. The remainder is kept in the stability fund,
managed by the Swedish National Debt Office. However, the Ministry of Finance
exercises the ownership of both parts.
Since the sales are proportionally distributed between the stability fund and
the governments other holding, more than half of the proceeds will be added to
the stability fund. The remainder is transferred to the state budget. Since the
stability fund is not invested in securities but kept in an account at the Debt
Office, the consequence will be that the borrowing requirement is also reduced
for this part of the payment.
- It is essentially sound that the stability fund is now selling part of its
holding in Nordea. Bank shares is not an asset that should be held in a fund
that will be realized during a financial crisis, says Director General Hans
Lindblad.
The shares in the stability fund were acquired during the financial crisis of
2009 when the government took part in Nordea's rights issue through the capital
infusion programme. The Debt Office acquired more than 7 percent of the shares
in Nordea for a total of SEK 5.6 billion. Just under half of those shares are
now being sold. The sale will bring SEK 10 billion to the stability fund. In
total, the fund has realized a profit of SEK 7.5 billion for this sub-item. The
remaining shares in the fund after today's transaction have a value of SEK 11
billion, based on today's purchase price.
For more information:
Questions on funding Maria Norström, Head of Funding, +46 8 613 46 35
Press Contact Linda Rudberg, +46 8 613 45 38
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Riksgälden via Thomson Reuters ONE
[HUG#1710535]
Unternehmensinformation / Kurzprofil:
Datum: 19.06.2013 - 12:40 Uhr
Sprache: Deutsch
News-ID 271320
Anzahl Zeichen: 3609
contact information:
Town:
Stockholm
Kategorie:
Business News
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