Purchases of commercial paper
The Riksbank will extend its purchases of securities over the year. This will also include purchases of securities issued by non-financial companies, commercial paper. This is a new measure to mitigate the effects of the corona pandemic on the Swedish economy.
On 16 and 19 March, the Riksbank decided to extend its bond purchases this year by up to SEK 300 billion in order to mitigate the effects of the corona pandemic. The extended government bond purchases were initiated on 18 March and purchases of covered bonds began on 25 March. As a next step in this programme, it is the Riksbank’s assessment that it is now appropriate to initiate purchases of commercial paper issued in Swedish kronor by Swedish non-financial corporations.
To avoid robust companies being knocked out as a result of the corona pandemic, the Riksbank decided, at an extraordinary monetary policy meeting on 26 March 2020, to initiate purchases of commercial paper. The aim is to improve market functionality and thus improve credit supply to Swedish companies, thereby supporting demand, output and employment in Sweden.
The purchases of commercial paper were initiated on 2 April.