The proposal means that the central government will guarantee 70 per cent of new loans banks provide to companies that are experiencing financial difficulty due to the COVID-19 virus but that are otherwise robust.
The guarantee will be issued to banks, which in turn will provide guaranteed loans to companies. A limit of SEK 75m per borrower has been proposed. The Swedish National Debt Office (Sw. Riksgälden) may grant exemptions from this limitation.
Non-financial companies with their main operations or domicile in Sweden. There is no formal limit on company size, however, the COVID-19 virus must have adversely affected the company’s finances.
The Swedish Government and The Swedish National Debt Office
The loans concerned are new loans and credit facilities that are granted during the period 1 April 2020 up to and including 30 June 2020, with the possibility of an extension of a maximum of three months.