Riksbank offers long loans at variable rates

Sweden's central bank said on Friday it would continue to offer loans in Swedish kronor at longer maturities to improve the functioning of the markets, and that the new loans would be made at a variable interest rate.

“Longer loans at a variable interest rate will make it easier for the banks to give credit to Swedish companies,” the Riksbank said in a statement.

Loans against normal collateral would be made with maturities of 3 and 6 months while loans with commercial paper as collateral would be offered at maturities of 3, 6 and 12 months.

“It is important that the Riksbank continues to supply loans to facilitate the banks’ funding and the functioning of the markets,” it said.

It said the first auction of loans granted against normal collateral would take place on Feb. 23rd A first auction of loans with commercial paper as collateral would be held on Feb. 20th.