New capital injection to Pengar i Sverige AB prior to liquidation

Date 24/06/2004

The Executive Board of the Riksbank decided on 23 June 2004 to provide a capital cover guarantee of SEK 200 million to its wholly-owned subsidiary Pengar i Sverige AB. The guarantee is necessary to cover both remaining operating losses during 2004 and 2005 and one-off costs during the winding up of the company. The winding-up costs include severance pay, compensation to customers whose contracts were terminated prematurely and expected capital losses from the sale of certain assets. The operational activities at Pengar i Sverige will cease on 2 July 2004.

The winding up of the activities at Pengar i Sverige was started in spring 2004 when the majority of the customer agreements were cancelled and the management was given notice of termination of contract. In the middle of May 2004 the Swedish Competition Authority announced that it was going to initiate a special investigation of the transfer of assets etc. at Pengar i Sverige to Securitas Värde AB. At the beginning of June, Securitas Värde decided to cancel the agreement with Pengar i Sverige, as Securitas did not consider it possible to await the outcome of the extended investigation. Pengar i Sverige has subsequently continued to wind up its activities, partly by giving the remaining staff notice of termination of contract and by cancelling the remaining customer agreements. The com-pany’s assets are being sold by tender.

The Executive Board also decided on 23 June 2004 to provide a planned shareholders’ contribution of SEK 10 million to its wholly-owned subsidiary Svensk Kontantförsörjning AB, which carries out the central bankrelated cash management activities.