The Riksbank’s measures in connection with the corona pandemic
To mitigate the economic effects of the corona pandemic, the Riksbank has implemented a number of measures. One of the aims is to supply liquidity so that companies still have access to credit. The Riksbank is also prepared to take further action if necessary.
The Riksbank is
- offering banks up to SEK 500 billion against collateral for onward lending to non-financial corporations operating in Sweden
- increasing its purchases of securities by up to SEK 300 billion in 2020. If necessary, the purchases will include government, municipal and mortgage bonds, as well as commercial paper
- reducing the lending rate for overnight loans to banks from 0.75 to 0.20 percentage points above the repo rate
- offering banks the opportunity to borrow an unlimited amount of money on a weekly basis against collateral at three months’ maturity at an interest rate of 0.20 percentage points above the repo rate
- giving banks greater flexibility as regards the type of collateral they pledge, e.g. mortgage bonds, when they borrow money from the Riksbank.
- has entered into a swap agreement in US dollars with the Federal Reserve, improving the Riksbank’s capacity to offer loans in US dollars in Sweden
- will offer/is offering collateralised loans in US dollars to Swedish banks.