EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 6 April 2010 
on extending government guarantees to banks and other institutions 
(CON/2010/29) 
 Introduction and legal basis
 
On 19 March 2010, the European Central Bank (ECB) re ceived a request from 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’). 
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 ordinance relates 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.  Purpose of the draft ordinance 
The draft ordinance amends Ordinance 2008:819 on government guarantees to banks, etc. which 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.  
In March 2009 the ECB was consulted on proposed amendments to Ordinance 2008:819 and adopted its 
Opinion CON/2009/30 and in October 2009 the ECB w as consulted on further proposed amendments to 
Ordinance 2008:819 and adopted its Opinion CON/2009/79. 
Under the provisions currently in force, the Swedis h guarantee scheme expires on 30 April 2010. In the 
memorandum accompanying the draft ordinance, the Sw edish Government states that while the scheme 
and other measures have contributed to the stab ilisation of the financial markets, the Swedish 
Government is of the view that markets have not  yet returned to normal functioning. The memorandum 
also points out that the guarantee schemes of many Union Member States will expire on 30 June 2010, 
                                                 
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 and that there is an ongoing discussion at the European level on the ha rmonised conditions for 
prolongations of these prog rams beyond 30 June 2010. 
The Swedish Government concludes that the guar antee scheme should be prolonged for another two 
months, i.e. until 30 June  2010, on unchanged terms. 
 2. General observations To the extent relevant, the observations ma de in Opinions CON/2008/62, CON/2009/30 and 
CON/2009/79 also apply to the draft ordinance. 
In particular, the ECB reiterates that any initiatives put in place by the competent national authorities to 
restore confidence in the financial markets should be coordinated and should aim to implement common 
principles in a spirit of close cooperation with ot her Member States and the Union institutions since 
significant differences in national implementation coul d create distortions in global banking markets. In 
this regard, the ECB emphasises that coordination of  the duration of national financial support schemes 
across the Union is of crucial importance in order to ensure a level playing field
3. In addition, the ECB 
notes the need for national support measures to be temporary in nature4. 
The ECB therefore underlines the temporary nature of this State guarantee scheme and the fact that the 
guarantees of the Swedish State will be limited in time.  
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 6 April 2010. 
 
[signed] 
  
The President of the ECB 
Jean-Claude TRICHET 
                                                 
3  See Opinions CON/2009/24, paragraph 3.1, CON/2009/54,  paragraph 2.5.2, and CON/2009/73, paragraph 3.2. 
4  See Opinions CON/2009/24, paragraph 2.2, CON/2009/ 62, paragraph 3.3, CON/2009/ 73, paragraph 3.2, and 
CON/2009/92, paragraph 3.6.