The Riksbank will cease to offer loans at maturities of three and six months, but will replace these with loans at a maturity of 28 days
The Riksbank will cease to offer loans at maturities of both three and six months, but will replace these with variable-rate loans at a maturity of 28 days. The loans will still be offered to the monetary policy counterparties. The changed terms and conditions are a further step in the phase-out of the Riksbank's support measures.
The banks’ opportunities to obtain funding have continued to improve in recent months. Against this background, the Executive Board of the Riksbank has decided to cease offering loans with maturities of three and six months. Instead, loans with maturities of 28 days will be offered at variable interest rates and against normal collateral. These loans will be made available in conjunction with the approaching maturity of the three fixed interest-rate loans of approximately SEK 295 billion provided by the Riksbank to the banks.
The supplement over and above the average repo rate during the maturity of the loans will be set at 0.30 percentage points. This price will encourage the banks to utilise normal market funding.
The auctions will be held approximately every fourth week, so as to coincide with the maturity of the three fixed interest-rate loans, in line with a timetable published on the Riksbank’s website, www.riksbank.com
. These loans will be offered until 6 October 2010. The first auction under the new terms and conditions will take place on 31 May.
You will find the decision memorandum at www.riksbank.se