Please note: this section will be updated as we receive more news, the loans are meant to start being auctioned off on 20 March

Background

• The Riksbank is offering up to SEK 500bn in loans to the banks at a zero interest rate against collateral, on condition that these loans are passed on to companies
• The banks then lend the money at their own prices, terms and conditions
• The banks will bear all counterparty risk - the state will assume no risk
• They announced the package on 13 March. Terms and conditions were supposedly sent to banks 16 March and the banks who wanted to participate had to indicate their interest by 18 March
• 22 banks were invited to the programme (list in sources below)
• The loans take the form of an auction, where the monetary policy counterparties (the banks) are given the opportunity to bid
• In this way, the distribution of the Riksbank's transactions will be transparent to the market. When lending money, the Riksbank will moreover accept the same collateral as applies for the Riksbank's loans in RIX, pursuant to the current Terms and Conditions for RIX and monetary policy instruments
• The programme will therefore be initiated on Friday, 20 March 2020, with a preliminary bid submission opportunity for SEK 100 billion
• Riksbanken is as of 19 March not disclosing how many banks have shown their interest
• Will be updated as the Riksbank releases more news

Eligibility

• It is entirely up to the banks who they want to lend the money to and under what terms. The banks will also carry the risk if the lender goes bankcrupt
• To be clear, the Swedish state will not assume the risk and guarantee the loans as in other European countries
• Nothing is communicated but as the banks set the terms themselves, it is unlikely these loans will be given to startups more than they are given loans today - i.e. startups having difficulties in getting loans now will most likely experience a similar situation with this money
• Communications directors from the banks are saying things along the lines of "we are ready to support our existing customers" and that the companies that the money will go to have to prove that they are "vital and healthy"