That a municipality buys and sells properties is no wonder.
However, it is not okay to lend money to a private trader.
That's what Olle Lundin, a professor at Uppsala University, says.
- I would probably say that is an unauthorized banking activity that is not compatible with the Local Government Act, he says when SVT calls and tells about Åre municipality's loans.
Have you heard of anything like this before?
- No, not so very clear.
I've heard of murky real estate deals, they're like sticks in the hill.
But this becomes so very tricky that they simply need to cash out, or rather avoid paying cash, and then the municipality regulates it for them, he says and continues:
- No, this was probably a rather unusual deal in the municipal sector.
"Must follow municipal law"
Åre's municipal council believes that the company must pay interest and that they thus do not see any problems with the municipality giving a loan.
But Olle Lundin is of a different opinion.
- I am probably inclined to say that this violates the municipal competence anyway.
You can not bake any terms into a deal and say it's just a deal.
You probably have to follow the municipal law at least, he says.
According to the Local Government Act, a municipality may not support an individual trader.
- You can give general support to the local business community and support, for example, business parks and the like, but supporting individual companies is not okay, says Olle Lundin.