[Sweden]: Message to the Federal Reserve System

[Connor]

Kingdom of Sweden Reinfeldt Administration

December 2006​

Dear Board of Govenors,

On behalf of the Government of Sweden, the Department of Finance is requesting urgent clarification regarding credit the accrued interest on the principal amount of $14,764,767,735.92 held within our account in the Federal Reserve System, this figure according to our most recent interest payment dated in December 2003. According to our understanding of the original the agreed terms of our Reserve Savings Account, our deposit is due to accrue interest on a bi-monthly basis which, at the last published interest rate of 1.2% would bring our account value to a total of $18,279,292,148.38.

My office, at the direction of the Executive Office of the Prime Minister, has been responsible for the total review of government finances and any discrepancies thereon in. We have identified a number of discrepancies surrounding our arrangements with the Federal Reserve System. Particularly of mention is the observed absence of credited interest payments or any formal statements reflecting such accruals over the duration of the deposit since the aforementioned statement, now spanning 36 months. This raises serious questions about the precise terms of the agreement, the basis for interest calculations and the schedule for disbursements. We request a detailed explanation on the following points:

1. Confirmation of the applicable interest rate and its calculation methodology.
2. The timeline and frequency of interest payments under the agreement.
3. Accounting statements detailing interest accrued and any payments made to date.
4. Any conditions or clauses that might affect the disbursement of interest.
5. The foundation and process for the regular updating of account holder balances.

Clarity on these matters is critical to maintaining trust and ensuring compliance with our financial arrangements. We expect a prompt and comprehensive response that addresses our concerns fully.

Regards,
Mats Odell
Assistant Secretary of Finance for the Financial Market
Department of Finance

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