Bids of SEK 60 billion received at today’s auction
News To avoid robust companies being knocked out as a result of the corona pandemic, the Riksbank decided on 13 March to lend up to SEK 500 billion to companies via the banks against collateral. The aim is to maintain the supply of credit to Swedish companies.
Today, Friday 20 March, the first auction of SEK 100 billion was held. 5 bids were received for a total value of SEK 60 billion. The loans were issued against collateral at a variable interest rate corresponding to the Riksbank’s repo rate, presently 0 per cent, and will mature over 2 years.
"It is important that the banks provide companies with loans so that the credit supply does not come under threat during the ongoing corona pandemic. These measures should be seen as a form of insurance, so that companies can feel sure that the system will work. All indications are that the banks have good liquidity at present. The Riksbank is following developments closely and stands prepared to take further measures and provide the liquidity that is needed. All of the Riksbank’s tools can be put to use,” says Governor of the Riksbank Stefan Ingves.