The coronavirus pandemic has led to liquidity problems on the financial markets, both in Sweden and abroad. Several companies report that they are having difficulties in refinancing their loans and several larger manufacturing companies are worried that their smaller subcontractors and customers will have problems with their funding. Additionally, both small and medium-sized enterprises are experiencing significant problems. The continued turbulence on the financial markets means that the credit supply in the Swedish economy may deteriorate further.
Given the increasing problems in the corporate sector, the Executive Board decided on 19 March to buy bonds and commercial paper issued by Swedish non-financial corporations as part of its asset purchase programme. The purchases of commercial paper were initiated on 2 April.
The Riksbank is now offering to purchase between 8 April and 31 May commercial paper issued in Swedish krona by Swedish non-financial corporations to a nominal total amount of SEK 32 billion. The first opportunity will be on 8 April, when the Riksbank offers to purchase commercial paper with a maturity of up to three months to a nominal amount of SEK 4 billion.
The purchases will be made on the secondary market and the issuing companies shall have a credit rating equivalent to Baa3/ BBB- or higher.
The Riksbank’s asset purchases will continue in general as long as these measures are justified by the economic situation.
Information on terms and conditions and future dates for purchases of commercial paper will be notified on www.riksbank.se.