The overall objective of Kommuninvest's debt management is to minimise long-term borrowing costs, thereby enabling its members to secure long-term financing on efficient terms. At the same time, the operational risks shall be minimised, primarily interest and currency risks.

Due to the scale of Kommuninvest's operations, perfect matching between assets and liabilities is not possible and the risks that arise in the lending, borrowing and investment operations are therefore managed at the portfolio level. Based on a conservative finance and risk policy, we make use of derivative instruments, mainly interest and currency swaps, to mitigate these market risks. We do not, for example, permit open currency risk positions in our borrowing. Derivative contracts are entered with approved, creditworthy counterparties. All derivative counterparties have ISDA agreements and CSA agreements are sought.

Kommuninvest acts as a Swedish government debt office and it is demanded of us that we have very good access to liquid funds and that Swedish municipalities and county councils can rely on us always being able to provide financing.

According to our directives, borrowing shall always exceed lending, with the difference consisting of surplus liquidity invested in secure, liquid securities. The liquidity reserve shall correspond to at least 25 percent of the sum of the balance sheet total and 50 percent of outstanding bids.

The policy for borrowing, investment,derivatives and lending is established annually by the board of Kommuninvest. It is the President's responsibility to ensure that these policies are adhered to and further developed.