The Swedish National Debt Office reduces transaction costs of foreign borrowing by extending foreign currency accounts

Press release 18 February 2000

The Debt Office has agreed with the Central Bank of Sweden (the Riksbank) to raise the limit for the foreign currency accounts held at the Riksbank in EUR and USD. The accounts will be capped at an amount corresponding to SEK 20 billion in total. The accounts in foreign currency were set up with the aim to reduce transaction costs in connection with borrowing in foreign currency.

These accounts, which can be used for temporary deposits in EUR and USD, will now comprise flows from borrowing and repayment of foreign currency loans, SEK/currency swaps as well as large interest payments.

In 1997 the Debt Office opened accounts with the Riksbank in DEM and USD. The accounts in foreign currencies were to be used solely for borrowing and repayment of commercial paper. The broader usage of the foreign currency accounts results from borrowing shifting from short-term to long-term as well as to the SEK/currency swapmarket.

Inquiries: Pär Nygren, telephone: 08-613 47 44