Regulation (2009:320) On The Financing Of Development Loans And Guarantees For Development Cooperation

Original Language Title: Förordning (2009:320) om finansiering av utvecklingslån och garantier för utvecklingssamarbete

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:320

General provisions



paragraph 1 within the framework of the Swedish development cooperation, the Board of Directors

international development cooperation agency (Sida) decide on

financing with development loans and guarantees (loan assistance).



Loan assistance to be used where this may help to

meet the objectives of international development cooperation,

reform cooperation in Eastern Europe, as well as policies for global

development.



Development loans will consist of a gift from the page and loans to

market conditions left by lenders. Development loan

can be combined with the warranty issued by the Side of the lender

for the borrower's obligations. Warranty can also be exhibited by

But development loans (independent guarantee).



section 2 of the Page may provide loan assistance for the benefit of States,

public bodies eg. provincial authorities and local authorities,

public commercial organisations and private companies

in countries with which Sweden is engaged in development cooperation,

reform cooperation and selective cooperation in the sectors

the Government decided in the respective country or region

cooperation strategy.



Page may provide loan assistance if



1. the loan assistance is for the benefit of sustainable

the fight against poverty, or, in the case of the countries of Eastern Europe,

contribute to the Government's targets for reform cooperation,



2. the operation is considered to have good economic returns,



3. There is very little risk of market disturbance or

distortions of competition in the financial sector

or the sector loan assistance fund in the partner country,

and



4. funding through existing capital markets for

the recipient reasonable cost is not available without the participation

of assistance.



Loan assistance for the benefit of States or public bodies in

currency other than in the national currency of the host country, shall not

be submitted to, or in countries that have severe debt burden or can

is expected to have a severe debt burden.



section 3 For investments that promote environmentally sustainable

development loan assistance can also be provided to other than above

said country categories and sectors where there are specific

reasons (environmental loans). Before the Side takes decisions in these cases should

consultations take place with government offices (Utrikedepartementet).



4 § Loan assistance shall be provided without the requirements of Swedish content

deliveries or funding (untying). Procurement

of goods or services shall be made in the international

competition. Page shall in each case indicate the

procurement rules apply.



§ 5 the recipient of the loan assistance to the Site be deemed to have

necessary credit worthiness. Page to be at such an assessment

consult the Swedish Export Credits Guarantee Board and affected lenders.



section 6 of the Lenders may be of Swedish or foreign bank or

financial institution selected by the borrower, and that Page

approved. Lenders can also be communicated by Side.



section 7 of the Loan assistance can be given in local currency if the Side judge

This appropriate from a development point of view.



section 8, Page decides on the conditions applicable to the part of the

development loan that is a gift. These terms and conditions to be included in the

the agreement between the lender and the borrower. Payment is made

by the lender or other designated party according to plan

approved by the site where loan and guarantee time adjusted

to the funded the return and the borrower's

ability to pay.



§ 9 Loyalty degree for development loans should be no more than eighty

percent, defined as page's gift in proportion to the

funded amount consisting of page's gift and loan

market terms.



section 10 of the application for the loan assistance is made in the side of those who want

loan assistance or for the recipient's account by the lender or

other.



11 § as part of efforts to strengthen the participation of industry

in development cooperation, Sida to develop its co-operation with the

the business sector through closer dialogue, exchange of experience and

mutual utilization of skills.



Warranties



section 12 Guarantees can be exhibited by page in order to share risks

and allow financing on acceptable terms

for projects and interventions that Side deems to be of great value

from a development point of view. Page may exhibit guarantee for risks

in connection with the transactions on the market. Side may Commission

other actor to exhibit the warranty.



paragraph 13 of the Guarantee shall be submitted to the riskavspeglande premiums

corresponds to the State's economic risk for the commitment and

administrative costs for the warranty. Page can subsidize

a certain part of this premium. This subsidy should be considered

as grant component in the transaction. When the guarantee provided to a

private companies do this itself bear some degree of risk.



Page should primarily interact with the Swedish Export Credits Guarantee Board for

to determine the premium rate applicable to each guarantee. At

necessary, the other actor or other guarantee institutions asked.



section 14 of the Export Credits Guarantee Board to bring page's actions before the

international forums relating to claims that may arise in

guarantee operations. Compensation received thereby,

added to security reserve.



section 15, page's total guarantee commitments must not exceed the

guarantee framework the Government annually sets the for the page.



Security Reserve



16 § security reserve should be established to cover

any damage caused by the guarantees issued under this

Regulation.



section 17 Safety reserve shall contain the

guarantee premium payments and provisions previously

made in u-credit system under the Regulation (1984:1132)

If credits for specific development purposes (u-credits) and the

guarantee premium payments and provisions made under

Page's experimentation with independent guarantees and

future recoveries from injuries in these activities.



Security reserve should be applied to guarantee workers ' premiums and

recoveries from injuries in SIDA's activities with

development loans and guarantees.



18 § Security reserve to be managed by the Export Credits Guarantee Board.

Board shall make risk assessments. If the security reserve shall not

is sufficient to cover the damage

guarantee operations give rise to the right to have a Page

Unlimited borrowing with the Swedish national debt Office.



Security reserve should be placed on the interest-bearing account with the

The Swedish national debt Office.



Other provisions



§ 19 For guarantee operations to Export Credits Guarantee Board for

Page's account every six months to make assessments of outstanding

Receivables, liabilities and risk of loss.

Export credits guarantee Board shall forward each month to report to

Page about all the money flows, liquid assets and new

transactions during the period.



Page and Export Credits Guarantee Board shall enter into a contract if the parties '

cooperation under this regulation. Export credits guarantee Board shall have

right to remuneration for their participation.



section 20 of SIDA's annual report will contain the values of the

guarantee commitments. The principles set out in

warranty Ordinance (1997:1006) shall apply.



paragraph 21 of the Decision in the cases pursuant to this Regulation shall not

subject to appeal.



Transitional provisions



2009:320



This Regulation shall enter into force on 1 June 2009, when

Regulation (1984:1132) if credits for certain

development purposes (u-credits) is repealed. For

credits granted before that date to older rules

applied.