A new report proposes to close down the Swedish mixed credits and soft loans facilities and establish a new “formally untied" and more flexible scheme. It states that Sida should subsidise guarantee premiums. Another suggestion is market guarantees and innovative loans for new techniques and products relevant for poverty eradication and climate change. Sida should outsource many tasks to Swedfund and the export credit agency, EKN.
Credits have lost ground as an aid tool internationally because of the debt burden of developing countries. Providing new loans to developing countries and later writing them off could undermine international financing systems.