Riksbank announces loans to Sweden's financial sector
AFX · 7 Nov 2008, 08:16
Published: 07 Nov 2008 08:16 GMT+01:00
The auction is the first of nine scheduled over the coming months of loans to monetary policy counterparties to ease liquidity strains in the markets.
The remaining auctions under the programme are scheduled for November 24th, December 8th, December 19th, January 5th, January 16th, January 26th and February 23rd.
The Riksbank has said that by announcing these dates in advance, it would "create predictability and thus better possibilities for the banks to plan their liquidity supply."
The loans are provided against collateral and have a maturity of 91 days. A minimum interest rate is set at the current repo rate plus a supplement of 0.25 percentage points.
The Riksbank has previously taken several liquidity-enhancing measures, such as creating a credit facility open only to banks that buy newly issued commercial paper, aiming to improve the supply of loans to the corporate sector.