Commercial paper purchases continue
Press release The Executive Board of the Riksbank has today decided that the purchases of commercial paper will with effect from 11 May also include paper with a remaining time to maturity of up to six months. The Executive Board has also decided that the Riksbank will continue to purchase commercial paper between 1 June and 30 September.
To keep monetary policy expansionary and provide support to the economy, the Executive Board decided on 19 March to purchase, within the scope of the Riksbank’s bond purchase programme, bonds and certificates issued by Swedish non-financial corporations. Between 8 April and 31 May, the Riksbank is offering to purchase commercial paper in an amount up to SEK 32 billion. The Executive Board of the Riksbank has today decided that these purchases of commercial paper will with effect from 11 May also include paper with a longer remaining time to maturity, up to six months. In this way, the Riksbank can continue to contribute to reducing companies’ refinancing risks.
By buying commercial paper, the Riksbank is helping to keep interest rates low and to improve market functionality, which improves the credit supply to companies and the impact of monetary policy on the economy. The situation on the market for commercial paper has gradually stabilised since the Riksbank began buying commercial paper. However, the market situation is still uncertain. It is therefore important that the Riksbank continues to contribute to the stable development of the market.
In light of this, the Executive Board has decided that between 1 June and 30 September the Riksbank will continue to purchase commercial paper issued in Swedish kronor by Swedish non-financial corporations. The Riksbank's holdings of commercial paper acquired within the scope of these purchases may not exceed SEK 32 billion up to 30 September 2020. The purchases will be made on the secondary market and cover certificates issued by companies with a credit rating equivalent to Baa3/ BBB- or higher.
The Riksbank is prepared to take further measures and to supply the necessary liquidity.
Further information and future dates for purchases of commercial paper will be notified on www.riksbank.se. Special terms and conditions are normally published at least 2 days prior to each bid procedure.