Loans to the banks for onward lending to companies

The Riksbank is offering the banks loans of up to SEK 500 billion against collateral to stimulate the banks’ onward lending to Swedish non-financial companies to mitigate the effects of the corona pandemic on the Swedish economy.

To secure a functioning supply of credit to Swedish non-financial corporations, the Riksbank has set up a programme for corporate loans in Swedish kronor, where banks that are monetary policy counterparties to the Riksbank can borrow, in total, up to SEK 500 billion from the Riksbank for onward lending to Swedish non-financial corporations. The programme also include onward lending to sole proprietors.

The price of the loans allocated will be at a floating interest rate equivalent to the Riksbank’s repo rate. 

This is a new measure and the first loans for onward lending were offered on 20 March 2020.

Outstanding loans in Swedish kronor for onward lending to companies

Here we present the Riksbank’s total net lending of Swedish kronor to banks for onward lending to Swedish non-financial companies. Net lending means Swedish kronor lent, minus the Swedish kronor paid back to the Riksbank at that point in time. 

Figure: Net lending in Swedish kronor

The diagram shows the Riksbank’s total net lending of Swedish kronor within the scope of this programme. The figures are stated in SEK billions. Source: Sveriges Riksbank.

Change in outstanding loans in Swedish kronor for onward lending to companies
  SEK billions
Outstanding volume 31 August 2020 164,5
New lending in September 2020 0
Repayments in September 2020 0
Outstanding volume 30 September 2020 164,5

 

Total lending in Swedish kronor for onward lending to companies

Here we present the Riksbank’s total lending to the banks for onward lending to Swedish non-financial companies. The Riksbank offers to lend Swedish kronor against collateral until the total amount of SEK 500 billion, which is the scope for the programme, has been lent.

Figure: Loans in SEK for onward lending to companies

The diagram shows, at each respective point in time, the Riksbank's total lending in Swedish kronor within the scope of this measure since the measure was initiated in March 2020. The figures are stated in SEK billions. Source: Sveriges Riksbank.

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Updated 19/10/2020