Swedish National Debt Office
The Swedish National Debt Office ( or shortly Riksgälden) founded by the Riksdag of the Estates
Riksdag of the Estates
The Riksdag of the Estates , was the name used for the Estates of the Swedish realm when they were assembled. Until its dissolution in 1866, the institution was the highest authority in Sweden next to the King...

 in 1789, is a Government agency
Government agencies in Sweden
The Government agencies in Sweden are state controlled organizations who act independently to carry out the policies of the Swedish Government. The Government Ministries are relatively small and merely policy-making organizations, allowed to control agencies by policy decisions but not by direct...

 in Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

. The first task of the Debt office was to finance the War against Russia started by King Gustav III
Gustav III of Sweden
Gustav III was King of Sweden from 1771 until his death. He was the eldest son of King Adolph Frederick and Queen Louise Ulrica of Sweden, she a sister of Frederick the Great of Prussia....


The method of raising funds was to issue promisory notes called Riksgälds denominated in Riksdaler which was the Swedish currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 at the time. The reason why the funds couldn't be raised through the Riksbank
Sveriges Riksbank
Sveriges Riksbank, or simply Riksbanken, is the central bank of Sweden and the world's oldest central bank. It is sometimes called the Swedish National Bank or the Bank of Sweden .-History:...

 was that its notes had to be backed by Silver (commodity money
Commodity money
Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money....

) to two thirds, while no such restrictions applied for the promissory notes (credit money
Credit money
Credit money is any claim against a physical or legal person that can be used for the purchase of goods and services. Examples of credit money include personal IOUs, and in general any financial instrument or bank money market account certificate, which is not immediately repayable in specie, on...

) issued by the Debt office. This produced a heavy seigniorage
Seigniorage can have the following two meanings:* Seigniorage derived from specie—metal coins, is a tax, added to the total price of a coin , that a customer of the mint had to pay to the mint, and that was sent to the sovereign of the political area.* Seigniorage derived from notes is more...

 induced inflation, where the exchange rate, for the promissory notes against Silver, was 1 to 4 in 1834.

In 1989, after two hundred years as one of the few agencies that reported directly to the Riksdag
Parliament of Sweden
The Riksdag is the national legislative assembly of Sweden. The riksdag is a unicameral assembly with 349 members , who are elected on a proportional basis to serve fixed terms of four years...

, the Debt office was reconstituted and is now reporting to the Ministry of Finance and the Cabinet
Government of Sweden
The Government of the Kingdom of Sweden is the supreme executive authority of Sweden. It consists of the Prime Minister and cabinet ministers appointed by the Prime Minister. The Government is responsible for their actions to the Riksdag, which is the legislative assembly...

. After 1989 it also assumed the role as the Government internal bank from the Riksbank.

Since January 1, 2008 the Debt office handles the Swedish deposit insurance
Deposit insurance
Explicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due...

, which 1996-2007 was handled by a separate governmental agency.

Since 2004, the Swedish National Debt Office is headed by Bo Lundgren
Bo Lundgren
Bo Axel Magnus Lundgren is a Swedish politician. He is the former leader of the Moderate Party. Lundgren was born in Kristianstad in Skåne. Between 1991 and 1994, he served as Deputy Minister of Finance with special responsibility for taxation...


See also

  • Scandinavian Monetary Union
    Scandinavian Monetary Union
    The Scandinavian Monetary Union was a monetary union formed by Sweden and Denmark on May 5, 1873, by fixing their currencies against gold at par to each other...

  • Krona
    Swedish krona
    The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...

  • Economy of Sweden
    Economy of Sweden
    The economy of Sweden is a developed diverse economy, aided by timber, hydropower and iron ore. These constitute the resource base of an economy oriented toward foreign trade...

  • Monetary policy of Sweden
    Monetary policy of Sweden
    The monetary policy of Sweden is decided by Sveriges Riksbank, the central bank of Sweden. The monetary policy is instrumental in determining how the Swedish currency is valued.-History:The main events in the monetary history of the Krona are:...

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