Skip to main content

Debt Office receives mandate to prepare credit guarantee programme for Swedish airlines

Written by Customer Service on . Posted in Public Companies.

The Swedish National Debt Office has been tasked by the Government to take preparatory actions for issuing state credit guarantees for Swedish airlines. The guarantee programme is a measure for mitigating the economic impact of the new coronavirus.
In accordance with the mandate, the credit guarantees shall altogether amount to a maximum of SEK 5 billion. They are being issued to benefit companies with a Swedish licence for commercial air transport and which have their main operations or are domiciled in Sweden.As a first step, The Debt Office will now request information from the airlines that may be included. On the condition that the Riksdag and the European Commission approve the proposal, the guarantee programme will be set up as soon as possible.“The Debt Office continuously works with central government guarantees. Under crisis conditions, they are one of the tools we can use to maintain financial stability and protect the economy. Now, the Debt Office is working swiftly to be able to set up a guarantee programme. Thereby, the negative economic impact of the coronavirus can be mitigated and the Swedish economy supported,” says Director General Hans Lindblad.The mandate stipulates that the issuance of guarantees shall be carried out in accordance with the Lending and Guarantees Ordinance (2011:211).New credits shall be able to be guaranteed up to 90 per cent of the loan amount.The companies’ share of the guarantee framework is determined based on the size of the company.The share of the guarantee framework for SAS AB may amount to a maximum of SEK 1.5 billion.The unique market situation resulting from the new corona virus (SARS-CoV-2) means that the companies’ financial standing and financial integrity should be assessed based on the previous year’s annual accounts.The terms of the guarantee shall be designed taking into account the risk to the central government and to assert its rights.A guarantee may not be issued unless there are terms in the guarantee contract to prevent the guaranteed provision of liquidity being used for a purpose other than that which is absolutely essential to prevent the failure of the company, such as profit withdrawals or bonus programmes for senior executives in the company.Read the Government’s press release (in Swedish)Read more about the Debt Office’s work with central government guarantees and lending 

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.