The Riksbank’s measures in connection with the corona pandemic
The Riksbank has implemented a large number of measures to alleviate the economic effects of the coronavirus pandemic and support the Swedish economy. The measures we have taken help to facilitate access to credit and liquidity. This reduces the risk of a shortage of money and sharply rising interest rates exacerbating the situation.
Programme for corporate lending via banks
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.
Extended purchases of securities
The Riksbank intends to purchase securities in an amount of up to SEK 500 billion, up to 30 June 2021, in addition to the purchases planned prior to the pandemic. The aim is to facilitate credit supply and mitigate the downturn in the economy. This includes purchases of government bonds, covered bonds (mortgage bonds), municipal bonds and corporate securities (commercial paper and corporate bonds).
Purchases of government bonds
Purchases of covered bonds (mortage bonds)
Purchases of corporate securities
Purchases of municipal bonds
Loans in US dollars
The Riksbank is offering the banks the possibility of loans in US dollars against collateral, up to a total of USD 60 billion. The purpose is to increase access to liquidity in US dollars in the Swedish financial system.
The riksbank is lending unlimited amounts of sek against collateral
The Riksbank is offering banks the opportunity to borrow an unlimited amount of money on a weekly basis against collateral at three and six months’ maturity respectively to the repo rate. This is to facilitate their financing and safeguard their role as credit suppliers to Swedish companies.
More banks and credit institutions have the possibility to borrow money from the Riksbank
The Riksbank grants Swedish credit institutions under the supervision of Finansinspektionen the opportunity to become temporary monetary policy counterparties to the Riksbank. Also temporary monetary policy counterparties will be given the opportunity to participate in the programme for lending to non-financial companies via banks.
Eased collateral requirements when borrowing from the Riksbank
The Riksbank has eased the requirements regarding the collateral the banks can use when borrowing from the Riksbank. The reason is that the banks’ access to liquidity in Swedish krona may need strengthening in connection with the coronavirus pandemic.
Reduced the overnight lending rate to banks
The Riksbank has reduced the overnight lending rate loans to banks from +0.75 percentage points (prior to the pandemic) to the repo rate +0.10 percentage points to ensure that the overnight rate on the market for Swedish krona is close to the repo rate. This measure has been taken also to make it less expensive for the banks to have access to overnight loans.