The Swedish National Debt Office (Swedish: Riksgäldskontoret or shortly Riksgälden) founded by the Riksdag of the Estates in 1789, is a Government agency in Sweden. The first task of the Debt office was to finance the War against Russia started by King Gustav III.
The method of raising funds was to issue promisory notes called Riksgälds denominated in Riksdaler which was the Swedish currency at the time. The reason why the funds couldn't be raised through the Riksbank was that its notes had to be backed by Silver (commodity money) to two thirds, while no such restrictions applied for the promissory notes (credit money) issued by the Debt office. This produced a heavy seigniorage 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, the Debt office was reconstituted and is now reporting to the Ministry of Finance and the Cabinet. 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, which 1996-2007 was handled by a separate governmental agency.
Since 2004, the Swedish National Debt Office is headed by Bo Lundgren.
Famous quotes containing the words national, debt and/or office:
“We want, and must have, a national policy, as to slavery, which deals with it as being wrong.”
—Abraham Lincoln (1809–1865)
“I wish the days to be as centuries, loaded, fragrant. Now we reckon them as bank-days, by some debt which is to be paid us, or which we are to pay, or some pleasure we are to taste.”
—Ralph Waldo Emerson (1803–1882)
“Reason is, and ought only to be the slave of the passions, and can never pretend to any other office than to serve and obey them.”
—David Hume (1711–1776)