Swedish National Debt Office proposes altered steering of the nominal
krona debt maturity
(Thomson Reuters ONE) - The Swedish National Debt Office proposes that the steering of thenominal krona debt maturity is changed in the guidelines for centralgovernment debt management. The aim is to adjust the steering so thatit takes into account the 30-year government bond that was introducedin March. This proposal means that the borrowing plan does not haveto be revised.The Debt Office's proposal is that the share of the nominal kronadebt with a maturity of up to and including twelve years is steeredby an average interest rate refixing period, while the share that hasa longer maturity is steered with a volume cap. The maturity profileof the nominal krona debt is very unevenly distributed, due to theintroduction of the 30-year bond. By dividing the debt, the steeringwill become more efficient and transparent.The Debt Office proposes the following guidelines for debt maturity:* Nominal krona debt:- Instruments with a maturity of up to twelve years will havean interest rate refixing period of 3.0 years- The outstanding volume of instruments with a maturity ofmore than twelve years will be capped at SEK 60 billion* Foreign currency debt: interest rate refixing period of 0.125 years* Inflation-linked debt: interest rate refixing period of 9.4 years at the end of 2010The Debt Office proposes unchanged guidelines for the debtcomposition:* Nominal krona debt: 60 per cent* Foreign currency debt: 15 per cent* Inflation-linked debt: 25 per centThe proposed target for the nominal krona debt with maturity of lessthan twelve years means that we do not have to make any adjustmentsin borrowing as a result of the 30-year bond. Thus we do not need torevise the current borrowing plan.The proposed guidelines are based on an assumption that centralgovernment debt will be in the range of SEK 1,300 billion at the endof 2010, and may increase somewhat further in the subsequent years.In relation to GDP, this means that the debt may rise to 45 per cent.The Debt Office submits an annual proposal of guidelines for centralgovernment debt management. The proposal forms the basis for theGovernment's decision on guidelines, which will be made by 15November.For further information, please contact:Thomas Olofsson, Head of Debt Management, +46 8 613 47 82Sten Hansen, Acting Head of Analysis, + 46 8 613 47 37http://hugin.info/133745/R/1344230/322241.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.09.2009 - 09:30 Uhr
Sprache: Deutsch
News-ID 6345
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