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)
Date: 2010-12-20
Institutions: European Central Bank
Subjects: State aid, Sweden, capital increase, financial stability, guarantee, national law

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 (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 on government guarantees’) and a draft ordinance amending 

Ordinance  SFS  2009:46  on  capital  contributions  to  solvent  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  Central  Bank  by  national  authorities  regarding  draft 
legislative provisions1, as the draft ordinances relate 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.  

Background 

1.1   Ordinance 2008:819 on government guarantees to banks 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 20082.  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  guarantees  may  be  issued  until  30 June  2011.  The  draft 

ordinance  on  government  guarantees  introduces  a  change  to  Section 7  of  Ordinance 2008:819, 

under which the total financial limit for the guarantee programme is lowered. Up to and including 

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. 

 
 
 
 
                                                 
31 December 2010, this limit is SEK 1 500 billion. From 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 solvent 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  currently  no  demand  for  government  guarantees  and  that 

Swedish banks are well capitalised. The Swedish Government 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 Swedish banking support scheme. The ECB notes that the 

Swedish  measures  are  in  line  with  guidance  from  the  European  Commission  for  extending  guarantee 
schemes beyond 1 January 20113. 

The ECB reiterates its view that coordination of the 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  

4  
5  

See  Communication  from  the  Commission  on  the  application,  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. 
See Opinions CON/2009/24, CON/2009/54, CON/2009/73, CON/2010/29 and CON/2010/50. 
See Opinions CON/2009/62 and CON/2009/92. 

2