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.

The infographic show the scope decided for individual programmes of measures and how much of these programmes has been used so far. Loans to banks for onward lending to com-panies – scope: 500 SEK billions, utilised: 165 SEK billions. Purchases of government, mortgage, municipal and corporate bonds, and commercial paper – scope: 700 SEK billions, utilised: 286 SEK billions. Increased access to liquidity – scope: unlimited, utilised: 29 SEK billions. Loans in US dollars – scope: 60 USD billions, utilised: 2 USD billions.

The icons show the frameworks decided for individual measures programmes and how much the Riksbank has lent or purchased within the respective programme so far. The figures are updated weekly. The total framework for the measures programmes amounts to around SEK 1,800 billion (this also included lending in US dollars translated into Swedish krona). Please note that the figures show total lending/total purchases, and not the Riksbank's current lending/holdings within the scope of the various measures programmes.

 

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.

Read more about the Riksbank’s loans to the banks for onward lending to companies

 

 

Extended purchases of securities

The Riksbank intends to purchase securities in an amount of up to SEK 700 billion, up to 31 December 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, treasury bills, covered bonds (mortgage bonds), municipal bonds and corporate securities (commercial paper and corporate bonds). 

Purchases of government bonds

Read more about the Riksbank's purchases of government bonds

Purchases of treasury bills

Read more about the Riksbank's purchases of treasury bills 

Purchases of covered bonds (mortgage bonds)

Read more about the Riksbank's purchases of covered bonds

Purchases of commercial paper

Read more about the Riksbank's purchases of commercial paper

Purchases of corporate bonds

Read more about the Riksbank's purchases of corporate bonds

Purchases of municipal bonds

Read more about the Riksbank's 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.

Read more about the Riksbank's measure to offer loans in US dollars

 

 

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. 

Read more about the weekly market operations at longer maturities in kronor

 

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. 

Read more about temporary monetary policy counterparties

 

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. 

Read more on the page Collateral

 

 

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.

Read more on the page Monetary policy instruments

 

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Updated 26/11/2020