EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 7 October 2009 
on extending government
 guarantees to banks and other institutions 
(CON/2009/79) 
 
Introduction and legal basis  
On 2 October 2009, the European Central Bank (ECB)  received 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 Article 105(4) of the Treaty establishing the 
European Community and on 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 is intended to amend Ordi nance 2008:819 on government guarantees to banks etc. 
which was adopted by the Swedish Ministry of Fi nance 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. Under the provisions currently in force, the Sw edish guarantee scheme expires on 31 October 2009. 
While the scheme and other measures have contributed to the stabilisati on of the financial markets, the 
Swedish Government is of the view that markets ha ve not yet returned to normal functioning and that 
further support is required. In the memorandum accompanying the draft ordinance,  the Swedish Government refers to the financial 
situation in the Baltic area and states that so fa r the situation has developed better than expected. 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  All ECB opinions are available on th e ECB’s website at  www.ecb.europa.eu. 
2                                                 Moreover, the banks have 
made large capital reserva tions on their balance sheets for further expected 
losses and, to guarantee further smooth financing, th e Swedish Government concludes that the guarantee 
scheme should be prolonged for another six months, i.e. until 30 April 2010, on unchanged terms. 
 
2. General observations Temporary nature of the scheme In line with the Conclusions of the Ecofin Council of 7 October 2008 and the Declaration issued by the 
Heads of State of the euro area on 12 October 2008, the ECB notes that harmonisation of the measures implemented at the national level is essential to ensure  the integration of the financial markets within the 
European Union, and within the euro area in particular. In this regard, the ECB emphasises that the coordination regarding the duration of national financial support schem es across the EU is of crucial 
importance in order to ensure a level playing field
3. In addition, the ECB emphasises the need for national 
support measures to be temporary in nature4. While the proposed extension to the scheme is based on the 
current elements of fragility in the national financial sector, it is unders tood that the temporary nature of 
this State guarantee scheme is essen tially maintained and that the invol vement of the Swedish State will 
be limited in time.  
 
This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 7 October 2009. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
 
3 See notably ECB Opinions CON/2009/24, paragraph 3.1, CON/2009/54, paragraph 2.5.2 and CON/2009/73, 
paragraph 3.2. 
4 See notably ECB Opinions CON/2009/24, paragraph 2.2, CON/2009/62, paragraph 3.3 and CON/2009/73, paragraph 3.2.