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Sweden

Paul Hastings in collaboration withRoschier
Liquidity Measures
Reliefs

Liquidity Measures

Increased loan facilities and credit guarantees for Swedish businesses

Government Measure

A range of measures have been presented to make it easier for Swedish businesses, particularly small- and medium-sized businesses, to access finance at this difficult time, for example:

  • Almi Företagspartner AB will receive a capital contribution of SEK 3b to increase its lending to small- and medium-sized businesses throughout the country.
  • The Swedish Export Credit Corporation's (Sw. Svensk Exportkredit) (“SECC") credit framework will be increased from SEK 125b to SEK 200b and can be used to provide both state-supported and commercial credit to Swedish export companies.
  • The Swedish Export Credit Agency (Sw. Exportkreditnämnden) (“EKN”) will decide on an expanded credit guarantee framework entailing inter alia an extension of the credit guarantee limit from SEK 450b to SEK 500b and implementation of new guarantees.
 
Eligibility
  • Almi: Sweden based SMEs. Companies with more than 250 FTEs are not eligible. Applications can made by companies here.
  • SECC SECC provides finance to export companies with turnover exceeding SEK 200m and the customers of such companies. Applications can made by companies here.
  • EKN: EKN insures export companies and banks against the risk of non-payment in export transactions. Small- and medium-sized export companies, major export companies and their suppliers are eligible.
 
Supervising Authority

The Swedish Government, the Swedish Export Credit Corporation and the Swedish Export Credit Agency.

 
Availability

No set time period other than during 2020.

New guarantees

Government Measure

In order to support Swedish exporting companies, EKN has decided to implement the following new guarantees:

  • New guarantee with coverage of 80% of the banks’ risk in working capital financing;
  • new guarantee with coverage of 75% of the banks’ risk in working capital financing; and
  • new guarantee for sub-suppliers in order to ensure that such sub-suppliers get paid more quickly and securely.
 
Eligibility
  • New guarantee with coverage of 80%: This guarantee is offered in relation to bank loans to small and medium companies with turnover of less than SEK 5b and may be used by both exporting companies as well as their sub-suppliers.
  • New guarantee with coverage of 75%: This guarantee is offered in relation to bank loans to large companies.
  • New guarantee for sub-suppliers: This guarantee is offered in relation to sub-suppliers of large companies.
 
Supervising Authority

The Swedish Export Credit Agency

 
Availability

No set time period other than during 2020.  

Loan guarantees for small- and medium-sized enterprises

Government Measure

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.

 
Eligibility

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.

 
Supervising Authority

The Swedish Government and The Swedish National Debt Office

 
Availability

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.

State credit guarantees to airlines

Government Measure

The Government proposes that airlines should be able to receive credit guarantees in 2020 amounting to a maximum of SEK 5b, of which SEK 1.5b is intended for SAS.

 
Eligibility

Airlines that have a Swedish permit to operate commercial aviation activities and have their main operations or headquarters in Sweden.

 
Supervising Authority

The Swedish Government.

 
Availability

No set time period other than during 2020.

Please note that the state guarantees for loans are subject to the European Commission’s approval.

Financial support from the Riksbank

Government Measure

The Riksbank is offering the banks up to SEK 500b against collateral for onward lending to non-financial companies operating in Sweden.

To make the facility attractive to the banks, the loans will be granted at a variable interest rate equivalent to the Riksbank’s repo rate, at present 0 per cent, and they will have a maturity of two years.

 
Eligibility

Sweden based non-financial companies.

 
Supervising Authority

The Riksbank.

 
Availability

Available for banks from 20 March 2020.

US dollar swap agreement

Government Measure

The Riksbank has entered into a currency swap agreement with the Federal Reserve in order to improve access to US dollars for banks and their customers in a situation where the markets are functioning poorly.

 
Supervising Authority

The Riksbank.

 
Availability

No set time period other than during 2020.

The Riksbank to further enlarge circle of counterparties

Government Measure

The Riksbank has also decided to give institutions that are under the supervision of Finansinspektionen but are not monetary policy counterparties the opportunity to participate in the previously decided programme for lending to companies via banks (monetary policy counterparties). By signing a special agreement, these institutions shall be able to become temporary monetary policy counterparties. This is so that the loans reach more non-financial corporations.

 
Eligibility

Institutions under supervision of Finansinspektionen.

 
Supervising Authority

The Riksbank

 
Availability

Available from 26 March 2020

Riksbank to buy commercial paper for SEK 32b

Government Measure

The Riksbank is now offering to purchase commercial paper issued in Swedish krona by Swedish non-financial corporations to a nominal total amount of SEK 32b. The first opportunity will be on 8 April, when the Riksbank offers to purchase commercial paper with a maturity of up to three months to a nominal amount of SEK 4b.

 
Eligibility

Swedish non-financial corporations with a credit rating equivalent to Baa3/ BBB- or higher

 
Supervising Authority

The Riksbank.

 
Availability

Between 8 April 2020 and 31 May 2020

Reliefs

Temporary reduction of employers’ social security contributions and individual contributions

Government Measure

Temporary reduction of employers’ social security contributions will be proposed so that only the old age pension contribution is paid. It is proposed that this reduction should apply to up to 30 employees and on that portion of the employee’s wage that does not exceed SEK 25k per month. This entails tax relief of up to SEK 5 300 per employee a month.

 
Eligibility

All employers.

 
Supervising Authority

The Swedish Government.

 
Availability

The proposal means that employers can request a reduction of employer’s contribution for payments made during 1 March 2020 through 30 June 2020.

If a decision is made in accordance with this proposal, the employer can request reduced employer's contribution by ticking box 062 on the individual tax declaration.

Temporary discount for rental costs in vulnerable sectors

Government Measure

To reduce costs for companies with considerable difficulties as a result of the COVID-19 virus—in sectors such as durable consumer goods, hotels, restaurants, and certain other activities—the Government proposes providing support that aims to facilitate and speed up renegotiation of rents. The approach is that central government will cover 50 per cent of the rental reduction up to 50 per cent of the fixed rent.

 
Eligibility

A landlord who has agreed to reduce the rent for a tenant within the durable consumer goods-, hotel-, or restaurant-sector may apply for the funding retrospectively once the regulation is in place.

 
Supervising Authority

The Swedish Government.

 
Availability

The support is valid from 1 April 2020 – 30 June 2020 and may be applied for afterwards.

Compensation can be applied for after the fact from county administrative boards. The Government is currently working on producing a regulatory framework to ensure it is in place as soon as possible. As this initiative involves state aid, it must be approved by the EU.

Respite for taxes and fees

Government Measure

Companies that are financially affected by Coronavirus can apply for a payment respite. Payment can be postponed for one year from the date of the decision. The respite is valid for up to three accounting periods between January and September 2020.

 
Eligibility

All companies that are financially affected by the Coronavirus.

 
Supervising Authority

The Swedish Tax Agency

 
Availability

The fastest way to receive a decision is to use the digital service in Mina sidor (Swedish only).