Opinion of the European Central Bank of 6 April 2010 on extending government guarantees to banks and other institutions (CON/2010/29)
Date: 2010-04-06
Institutions: European Central Bank
Subjects: State aid, Sweden, financial stability, guarantee, national law

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) received a request from the Swedish Ministry of 

Finance for an opinion on a draft ordinance amending 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  Central  Bank  by  national  authorities  regarding  draft 
legislative provisions1, as the draft ordinance relates to rules applicable 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 20082.  

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 was consulted on further proposed amendments to 

Ordinance 2008:819 and adopted its Opinion CON/2009/79. 

Under the provisions currently in force, the Swedish guarantee scheme expires on 30 April 2010. In the 

memorandum accompanying the draft ordinance, the Swedish Government states that while the scheme 

and  other  measures  have  contributed  to  the  stabilisation  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  
2  

OJ L 189, 3.7.1998, p. 42.  
All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 

 
 
 
 
                                                 
and  that  there  is  an  ongoing  discussion  at  the  European  level  on  the  harmonised  conditions  for 

prolongations of these programs beyond 30 June 2010. 

The  Swedish  Government  concludes  that  the  guarantee  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  made  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  other  Member  States  and  the  Union  institutions  since 

significant differences in national implementation could 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 field3. 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  
4  

See Opinions CON/2009/24, paragraph 3.1, CON/2009/54, paragraph 2.5.2, and CON/2009/73, paragraph 3.2. 
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. 

2