The objective for Kommuninvest's liquidity management is:

- For surplus liquidity to enable continued turnover in existing lending regardless of market conditions.

- To undertake the measures necessary to ensure that all of the company's payment commitments can be met on time without incurring additional costs.

- To identify, measure and monitor liquidity risks in the operations.

- To undertake measures to keep liquidity risk within stated parameters and limits and to achieve the targets set for the operations by the board of directors and senior management in a manner that is as efficient as possible in terms of risk and cost.

Short-term liquidity management is based on cash flow forecasts for borrowing, lending and investment activities for a period of 12 months ahead. The analysis includes estimates of potential additional new lending but excludes possible cash flow effects from cancellations within Kommuninvest's short-term borrowing programmes. We also include the possibility of all cancellable loans being terminated.

Short-term surplus liquidity is invested in bank certificates, deposits, repurchase agreements and central bank certificates. For short-term financing, we mainly use our ECP programme and our Swedish commercial paper programme.