3 [5]  The idea of all these seven measures is that together they will function as a type of insurance for the Swedish economy. This is a point that needs to be reiterated. The purpose of the measures is to prevent problems on the financial markets which in turn exacerbate the situation for Swedish companies. The Riksbank is supplying banks with money almost free of charge to create the conditions for companies to gain access to loans if and when they most need them. Banks having good liquidity themselves and not seeing a need to participate in the Riksbank’s programme can be a positive sign. It means that companies should not have problems obtaining bank loans and the Riksbank’s measures act as an insurance that this will continue to be the case. Another point that is worth reiterating is the magnitude of our measures. The programme of corporate lending amounts to SEK 500 billion in total, which is more than the sum of all the loans currently taken out by small and medium-sized enterprises put together. Added to this are new asset purchases of up to SEK 300 billion, almost doubling the Riksbank’s bond holdings. The Riksbank also has the possibility to, via an agreement with the US Federal Reserve, lend US dollars corresponding to SEK 600 billion. This is more than the total value of the Riksbank’s gold and currency reserves.
In addition, banks are being offered the opportunity to borrow an unlimited amount of money each week against collateral at three months’ maturity at an interest rate of 0.20 percentage points above the repo rate, which is at zero per cent. In addition to this, the Executive Board has decided that the Riksbank will extend its purchases of securities by up to SEK 300 billion up until December. The Riksbank normally buys government bonds. In these exceptional circumstances, however, it is important to ensure that all major markets continue to function. For this reason, the Riksbank has now also begun to purchase mortgage bonds and will purchase municipal bonds. In the last few days, corporate bonds and commercial paper issued by Swedish non-financial corporations have also been included in the asset-buying programme. These bond purchases increase the access to credit in the economy in general and future purchases of corporate bonds and commercial paper will provide additional support to Swedish companies in particular. Just like the Riksbank’s previous purchases of government bonds, the new purchases will also help to keep monetary policy expansionary and to stimulate activity in the economy. Given the global nature of the crisis, it is also important to ensure that there is access to US dollars (USD) in the Swedish financial system. To strengthen access to one of the most important currencies for Swedish companies, the Riksbank has announced that we will lend up to USD 60 billion.