Loans to the banks for onward lending to companies
The Riksbank is offering the banks up to SEK 500 billion against collateral to stimulate the banks’ onward lending to companies operating in Sweden. This is a new measure 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.