Riksbank offers loans to corporate sector

Sweden's central bank said on Wednesday it would facilitate access to loans for non-financial companies feeling the effects of the global crisis.

“The accentuation of problems in financial markets has been accompanied by difficulties in the supply of credit to companies outside the financial sector,” bank chief Stefan Ingves said in a statement.

The Riksbank said it had therefore decided “to improve the supply of loans to the corporate sector (and) facilitate bank lending to large non-financial companies.”

The bank would provide a new temporary credit facility to allow banks to “make greater use than before of collateral in the form of commercial paper with maturities up to one year.”

The central bank said it would offer the new loans to banks through a series of auctions, with the first scheduled for Wednesday, November 5th, for a maximum of 40 billion kronor (4.04 billion euros, 5.16 billion dollars).

Auctions would be held every second week after that, it said.

“This makes it easier for companies to obtain loans and increases the banks’ possibilities of providing companies with liquidity,” Ingves said.

“In that way it also leaves resources for bank loans to smaller companies as well,” he added.