Press release -
The funding forecast is revised down
Kommuninvest has revised down its funding forecast. The need for long-term funding (maturities longer than one year) is expected to be SEK 130 billion for 2020. This is a reduction compared to the previous forecast, which was SEK 150-160 billion.
The new forecast is built on expected turnover of maturing loans, new lending, customer demand regarding different maturities as well as the size and financing of the liquidity reserve at the end of the year.
So far in 2020, Kommuninvest has borrowed around SEK 98 billion.
The main reason why the forecast has been revised down is that lending growth has been lower than expected.
- After the period of market turbulence in March-April, when lending was high, lending growth has gradually slowed. During summer and early autumn, the funding needs of municipalities and regions have, among other things, been affected by government support and higher projections for tax revenues, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
David Ljung, Head of Communications, tel: +46 73 068 45 45, e-mail: david.ljung@kommuninvest.se
Topics
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 292 municipalities and counties/regions are members of this voluntary cooperation. With total assets exceeding SEK 450 billion (USD ~47 billion), Kommuninvest is the largest lender to the local government sector and one of the ten largest credit institutions in Sweden. The head office is located in Örebro.
