EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 20 December 2010 
on extending government guarantees to banks and other institutions and the prolongation of the 
State recapitalisation scheme 
(CON/2010/93) 
 Introduction and legal basis
 
On 23 November 2010, the European Central Bank (E CB) received a request fro m the Swedish Ministry 
of Finance for an opinion on a draft ordinance am ending Ordinance 2008:819 on government guarantees 
to banks etc. (hereinafter the ‘draft ordinance on government guarantees’) and a draft ordinance amending 
Ordinance SFS 2009:46 on capital contributions to solv ent banks and others (hereinafter the ‘draft 
ordinance on capital contributions’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the sixth indent  of Article 2(1) of Council Decision 98/415/EC of 
29 June 1998 on the consultation of the European Ce ntral Bank by national authorities regarding draft 
legislative provisions1, as the draft ordinances relate to rules app licable to financial institutions insofar as 
they materially influence the stability of financial institutions and markets. In  accordance with the first 
sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council 
has adopted this opinion. 
 1.  Background 
1.1  Ordinance 2008:819 on government guarantees to ba nks etc. was adopted by the Swedish Ministry 
of Finance on 29 October 2008. The ECB was consulted on Ordinance 2008:819 at the draft stage and adopted its Opinion CON/2008/62 on 29 October 2008
2. Subsequently the ECB adopted the 
following opinions on proposed amendments to Ordinance 2008:819: Opinions CON/2009/30, CON/2009/79, CON/2010/29 and CON/2010/50. 
1.2 The Swedish Government now proposes some changes to Ordinance 2008:819 and a prolongation 
of its validity by six months, i.e. that guara ntees may be issued until 30 June 2011. The draft 
ordinance on government guarantees introduces a ch ange to Section 7 of Ordinance 2008:819, 
under which the total financial limit for the guara ntee programme is lowered. Up to and including 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
2 31 December 2010, this limit is SEK 1 500 billion. Fr om 1 January 2011, the total financial limit 
for the guarantee programme will be SEK 750 billion.  
1.3 Ordinance SFS 2009:46 on capital contributions to so lvent banks and others entered into force on 
17 February 2009. The ECB adopted the following opinions on proposed amendments to Ordinance SFS 2009:46: Opinions CON/2009/58, CON/2010/11 and CON/2010/50. 
The Swedish Government now proposes some  changes to Ordinance SFS 2009:46 and a 
prolongation of its validity until 17 August 2011. 
 2.  Purpose of the draft ordinances  
The Swedish Government states that there is curre ntly no demand for government guarantees and that 
Swedish banks are well capitalised. The Swedish Gove rnment views the guarantee programs as a standby 
insurance policy that may provide banks access to medium term financing if conditions were to 
deteriorate. The Government has also introduced  a gradual phasing out of the support measures, by 
lowering the total financial limit for the guarantee programme. 
 3.  General observations  
The ECB welcomes this gradual exit from the Swedis h banking support scheme. The ECB notes that the 
Swedish measures are in line with guidance from th e European Commission for extending guarantee 
schemes beyond 1 January 2011
3. 
The ECB reiterates its view that coordination of th e duration of national financial support schemes across 
the Union is of crucial importance in order to ensure a level playing field4. In addition, the ECB notes the 
need for national support measures to be temporary in nature5. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 20 December 2010. 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
                                                 
3  See Communication from the Commission on the applicatio n, from 1 January 2011, of State aid rules to support 
measures in favour of banks in the context of the financial crisis, SEC(2010) 1466 of 1 December 2010. 
4  See Opinions CON/2009/24, CON/2009/54,  CON/2009/73, CON/2010/29 and CON/2010/50. 
5  See Opinions CON/2009/62 and CON/2009/92.