New loans in SEK and USD
To manage the continued strains in the credit markets, the Riksbank will be lending a further USD 10 billion and a further SEK 80 billion in auctions held this week. Both loans have a maturity of three months. The Riksbank is also considering measures to facilitate the banks’ lending to companies outside of the financial sector.
“The Riksbank has taken a number of measures at regular intervals in recent weeks to facilitate the supply of credit and improve the functioning of the financial markets. We will continue with this until confidence has been restored and the supply of credit to companies and households is once again functioning normally," says Governor Stefan Ingves.
On Thursday, 15 October the Riksbank will lend, against collateral, a further USD 10 billion over a period of three months to the Bank’s primary monetary policy counterparties. The dollar loan announced earlier of a maximum of USD 15 billion to be held on 22 October will remain unchanged.
On Thursday, 16 October, the Riksbank will offer a new loan of SEK 80 billion over a period of three months, against collateral, to its monetary policy counterparties. The interest rate on these SEK loans shall be at least equal to the prevailing repo rate with an addition of 0.25 percentage points.
The Riksbank has now taken and announced extensive liquidity assistance measures in dollars and Swedish kronor to the banks. As the problems in the financial markets have worsened, the supply of credit to companies outside of the financial sector has also deteriorated. The Riksbank has noted this and is preparing measures to directly facilitate the banks’ lending to these companies.
More information on the new loans will be published later today at www.riksbank.se.