Swedish ECA studying new import guarantee fund

(Regeringen, Stockholm, 12 April 2022) Google translation. The Swedish Riksdag has proposed a budget amendment for 2022 that would authorize the government to issue guarantees of up to SEK 3 billion (US$305 million) for the purpose of insuring critical raw material imports for industry, to be administered by the Swedish Export Credit Agency (EKN). The new government guarantee is intended to support the green transition threatened by increased demand for critical raw materials and increases in raw material prices which have risen markedly since Russia's invasion of Ukraine. The raw material guarantee would fall under EKN's sustainability policy and hence EKN must take into account its guaranteeing of the environment, extraction of fossil fuels, human rights and working conditions, combating corruption and tax evasion and promoting sustainable lending to poor countries. As the credit guarantee is linked to the import of raw materials, unlike EKN's other range of export credit guarantees, a new regulation is required and a Proposal for a new regulation went out for consultation on 25 March.