Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||SEK80,524,000,000||USD8,187,202,286|
|01A - Short-term lending info_outline||SEK60,700,000,000||USD6,171,615,652||
(i) March 18, The Riksbank is offering the banks the opportunity to borrow an unlimited amount of money on a weekly basis against collateral at three or six months’ maturity (at an interest rate of the repo rate plus 0.2 percentage points, which was reduced to the repo rate in July). The aim is to strengthen banks' acces to liquidity, and it is a new measure to mitigate the effects of the COVID-19 pandemic. As of August 28, total lending amounted to SEK28.7 billion; (ii) To mitigate the effects of the COVID-19 pandemic on the Swedish economy, the Riksbank intends to purchase securities in an amount of up to SEK500 billion, up to 30 June 2021, in addition to the purchases planned prior to the pandemic. These purchases will include inter alia securities issued by non-financial corporations – commercial paper and corporate bonds. The total holdings of commercial paper is up to SEK32 billion. As of September 9, total purchases of commercial papers amounted to SEK11.8 billion [update].
|01B - Support policies for short-term lending info_outline||
No amount/estimate: (i) Easing rules for the use of covered bonds as collateral; (ii) Possibility for banks to temporarily breach the liquidity coverage ratio (LCR) for individual currencies and for total currencies.
|01C - Forex operations info_outline||SEK19,824,000,000||USD2,015,586,634||
Up to USD60 billion auction by the Riksbank against collateral to monetary policy counterparties (auctions: March 26; April 2, 16, 23, 30; May 14, 28; June 11, 25; July 9, 23; August 6, 20). Peak claims on residents inside Sweden denominated in foreign currency amounted to SEK19.824 billion. September 15, The Riksbank has decided to continue to offer its monetary policy counter-parties loans in US dollars against collateral until 31 March 2021 [update].
|02 - Credit creation info_outline||SEK820,075,000,000||USD83,380,357,588|
|02A - Financial sector lending/funding info_outline||SEK765,000,000,000||USD77,780,658,543||
(i) On March 13, the Riksbank decided to lend up to SEK500 billion to banks to safeguard the supply of credit to companies, to prevent them from being knocked out as a result of the spread of the coronavirus. To encourage banks, the loans will be granted at a variable interest rate equivalent to the Riksbank's repo rate, at present 0%, and they will have a maturity of 2 years. As of September 11, loans for onward lending amounted to SEK164.5 billion [update]; (ii) March 20, The Riskbank will purchase mortgage and other covered bonds issued in Swedish kronor in the secondary market, with maturities of more than one year. Until 30 September 2020, the Riksbank is offering to purchase covered bonds for SEK145 billion. July 1, The Riksbank is offering to purchase covered bonds for SEK210 billion until 31 December 2020. As of September 11, total purchases of covered bonds amounted to SEK135 billion [update]; (iii) May 15, Until 30 September 2020, the Riksbank is offering to purchase municipal bonds for SEK30 billion in the secondary market. The purchases are part of the bond-purchasing programme adopted on 16 March 2020 and that runs until the end of December 2020. July 2, the Riksbank is offering to purchase municipal bonds for SEK45 billion until 31 December 2020. As of September 11, total purchases of municipal bonds amounted to SEK25.2 billion [update]; (iv) September 1, Riksbank's Executive Board has decided to begin purchases of corporate bonds in the week beginning September 14, 2020. Between 1 September 2020 and 30 June 2021, the Riksbank would offer to purchase corporate bonds at a nominal amount of SEK10 billion. The purchases strengthen the Riksbank's ability to act if the supply of credit to companies deteriorates further as a result of the COVID-19 pandemic. The purchases will be made on the secondary market and include non-subordinated corporate bonds issued by companies with a credit rating corresponding to Baa3 / BBB- or higher with a remaining maturity of up to five years.
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) On 24 March, the Financial Supervisory Authority (FSA) stressed that it expects credit institutions to stop this year's dividend payments and use the earnings to further strengthen their capital; (ii) Reduction of lending rate for overnight loans by 55 basis points (from 0.75% to 0.2%) while leaving the repo rate unchanged at 0%; (iii) Temporary recognition of all credit institutions under the supervision of the FSA as counterparties, enabling them to access the new lending facility; (iv) Easing of countercyclical capital buffer by 2.5 percentage points; (v) Extension of the phase-in period for the banks to comply with the new minimum requirements for own funds and eligible liabilities (MREL) until 2024 (from 2022); (vi) June 30, The FSA has urged supervised banks and credit institutions to refrain from paying dividends or buying back shares; (vi) No amount/estimate, July 1: (a) Cut on the interest rate on the standing loan facility from the repo rate plus 0.2 percentage points to the repo rate plus 0.1 percentage points; (b) Cut on the interest rate and offer longer maturities on the weekly extraordinary loans to banks-the interest rate is cut from the repo rate plus 0.2 percentage points to the repo rate, and loans are offered at maturities of three months and six months; (c) Extend the maturity on loans to banks for onward lending to companies from two to up to four years; (d) Cut the interest supplement that applies if the requirement for onward lending to Swedish companies is not met, from 0.20 percentage points to 0.10 percentage points.
|02C - Loan guarantees||SEK55,075,000,000||USD5,599,699,045||
(i) SEK5 billion in guarantee for airlines; (ii) SEK50 billion increase of the ceiling for credit guarantees from EKN (the agency which insures export companies and banks against the risk of non-payment in export transactions) (to SEK500 billion from SEK450 billion), same amount as during the 2008 financial crisis, and the coverage is extended to sea shipping; (iii) SEK75 million of government guarantees on 70% of new bank loans to companies experiencing financial difficulty but otherwise robust; (iv) May 5, Within the SEK5 billion guarantee for airlines already computed, the Debt Office issued a credit guarantee of SEK1.5 billion to Scandinavian Airlines System Aktiebolag (together with Denmark, for the same amount); (v) May 27, Together with the Centre Party and the Liberal Party, the Government proposed an additional SEK400 million for Almi Invest. The additional funding is aimed at bridging the crisis in small innovative businesses and avoiding the loss of structural capital and intangible assets in the life science sector and others. The amount will be added to the package once approved.
|03 - Direct long-term lending info_outline||SEK78,000,000,000||USD7,930,576,949|
|03A - Long-term lending info_outline||SEK78,000,000,000||USD7,930,576,949||
(i) The Swedish Export Credit Corporation’s credit framework will be increased from SEK125 billion to SEK200 billion and can be used to provide both state-supported and commercial credit to Swedish export companies; (ii) Almi, a state agency which offers loans to companies with growth potential and assists in their business development, will get a new capital grant of SEK3 billion (about EUR270 million) to allow it to lend more to small and medium enterprises.
|03B - Forbearance||
Suspension of amortization requirement until June 2021 (banks and borrowers may agree to reduce or suspend amortization payments temporarily).
|04 - Equity support info_outline||SEK5,000,000,000||USD508,370,317||
June 30, The Government will participate in the recapitalization of SAS AB with an amount of no more than SEK5 billion. The government supports the submitted plan for a recapitalisation of the company and the measures necessary to implement the plan. August 17, The measure to recaptalize SAS was approved by the European Commission.
|05 - Government support to income/revenue||SEK468,876,500,000||USD47,672,579,013|
|05A - Health||SEK47,532,000,000||USD4,832,771,584||
(i) SEK3 billion compensation to municipalities and regions for extraordinary measures and extra costs in health and medical care (raised on 2 April from initial SEK2 billion); (ii) April 2, SEK20 billion additional grants to municipalities and regions in 2020, up from SEK5 billion previously planned, of which SEK12.5 billion will be permanent; (iii) May 7: (a) Extended reimbursement for the first day of sickness (SEK3.2 billion), (b) continued suspension of medical certificate requirement (SEK1.1 billion), (c) central government responsibility for sick pay costs extended and adjusted (SEK9 billion), and (d) financial support to sick self-employed (SEK250 million); (iv) May 11, New measures to strengthen health elderly care (SEK5 billion); (v) June 4, The government is pledging an additional SEK5.9 billion for additional virus testing; (vi) June 26, SEK82 million is paid out to municipalities, regions, and the country administrative board in Stockholm for the supervision of temporary infection control measures at serving places. The Act on Temporary Infection Protection Measures at Serving Places comes into force on July 1.
|05B - Non-health||SEK421,344,500,000||USD42,839,807,429||
(i) March 16, SEK20 billion subsidy for short-term lay-offs; (ii) March 20, SEK500 million (EUR45 million) for cultural activities that lose revenue as a result of the restriction on public events and the same amount for sports; (iii) March 25, SEK33 billion for temporary reduction of employers' social security contributions to the old age pension contribution; (iv) March 25, SEK5 billion for temporary discount for rental costs in vulnerable sectors (consumer goods, hotels, restaurants and certain other activities), government covering 50%; (v) March 25, SEK20 billion for cancelling taxable profits of SMEs (sole proprietors and partners in Swedish partnerships) for 2019; (vi) March 25, SEK315 billion, companies can defer 3 months payment of employer social security contributions, preliminary tax on salaries and VAT for up to 12 months, with interest; (vii) March 25, To support SMEs, it will also be allowed to defer the value-added tax reported annually. Hence, companies can defer the payment of last year's VAT that is due shortly. If this is used to the maximum, it can amount to SEK7 billion; (viii) SMEs can claim back the preliminary tax paid in 2019 and either pay it later or set it off against future losses (the maximum liquidity reinforcement could amount to SEK13 billion); (ix) May 7, Higher ceiling for unemployment insurance benefits (SEK1.1 billion); (x) May 19, Allocated SEK720 million to extend maintenance work on railways, and increased road maintenance by SEK300 million. In light of the coronavirus, the reduced traffic allowed the government to pursue infrastructure spending. In addition to improvements in rail and road networks, the investment also contributes positively to employment; (xi) May 27, The Swedish Agency for Economic and Regional Growth mandate is being strengthened (SEK11 million) to facilitate the matching of unemployed people to the green industries; (xii) July 2, SEK100 million is allocated so that municipalities can offer jobs for young people this fall; (xiii) July 7, SEK3.3 million in 2020 for educational programs in shortage occupations, and SEK1.7 million for lifelong learning at the Swedish University of Agricultural Sciences; (xiv) No amount/estimate: July 7, The Government has adopted an ordinance that enables the provision of compensation for the temporary suspension of fishing activities – tie-up support – to commercial fishers who have been particularly affected by the COVID-19 pandemic; (xv) July 7, As a way to mitigate the economic consequences of the virus outbreak, the government allocates SEK5 billion in support of reduced fixed rents for vulnerable industries in sectors such as retail, hotels, restaurants and certain other activities; (xvi) July 16, SEK70 million for capacity-building initiatives in the hospitality industry; (xvii) No amount/estimate: July 17, Compensation will be given for ships that have been taken out of service due to the spread of the coronavirus; (xviii) August 6, Corona crisis support of SEK500 million to the news media; (xix) September 2, EUR8.5 million in total compensation is allocated for parents who pay the costs for childcare entirely themselves because of COVID-19 [update]; (xx) September 4, SEK30 million is set aside to support the municipalities' work to strengthen medical care [update].
|06 - Budget reallocation info_outline|
|07 - Central bank financing government||SEK45,500,000,000||USD4,626,169,887|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities||SEK45,500,000,000||USD4,626,169,887||
March 16, SEK300 billion Riksbank increase of purchases of securities in 2020 (including government and municipal bonds, covered bonds and securities issued by non-financial corporations). July 1, The framework for the asset purchases is being extended from SEK300 billion to SEK500 billion up to the end of June 2021. Apri 27, Riksbank will, between 1 May and 30 September 2020, purchase nominal Swedish government bonds for a nominal amount totalling SEK18 billion in addition to the previously decided purchases of government bonds during the period July 2019–December 2020. Until 30 September 2020, the Riksbank is offering to purchase government bonds for SEK25.5 billion, in addition to the previously decided purchases of government bonds. July 1, The Riksbank is offering to purchase government bonds for SEK45.5 billion, in addition to the previously decided purchases of government bonds until 31 December 2020. As of September 11, total purchases of government bonds within the program of asset purchases was SEK22.5 billion [update].
|08 - International Assistance Received||SEK590,121,000,000||USD60,000,000,000|
|08A - Swaps info_outline||SEK590,121,000,000||USD60,000,000,000||
Establishment of a swap facility of USD60 billion between the Riksbank and the US Federal Reserve (mutual currency arrangement). August 5, swap agreement is extended by 6 months, untill 31 March 2021.
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided||SEK9,900,000,000||USD1,006,573,228|
|09A - Swaps info_outline|
|09B - International loans/grants||SEK9,900,000,000||USD1,006,573,228||
(i) June 16, The Swedish parliament has given its approval to the Riksbank lending around SEK6.9 billion to the International Monetary Fund, for onward lending to low-income countries as part of the IMF’s Poverty Reduction and Growth Trust; (ii) June 17, The government has decided on a contribution to the World Bank's fund for low-income countries, IDA, of SEK9.2 billion, which will be paid out over a period of nine years. The contribution to IDA will be crucial for many poor countries as they now tackle the effects of the COVID-19 crisis on public health, the economy and the labor market (where the money should go to for the next 3 years, estimated at SEK3 billion).
|10 - No breakdown|
|11 - Other Economic Measures||
June 12, Sweden's parliament appointed two academics to review the unprecedented period of negative interest rates and massive asset purchases conducted by the central bank between 2015 and 2020.
|12 - Non-Economic Measures||
(i) March 14, The Ministry of Foreign Affairs advised against non-essential travel to all countries; (ii) Many secondary schools and universities have switched to distance learning; (iii) Relatives should avoid "unnecessary visits" to hospitals and from April 1, and a ban on visiting elderly care institutions is imposed; (iv) Events with more than 50 persons are banned since March 27; (v) May 14, The temporary entry ban began to apply on March 19 and initially applied for 30 days. It was subsequently extended until May 15 in accordance with the recommendation of the Commission. The Government has now decided on a further extension of the entry ban until 15 June; (vi) June 13, public transport where a place cannot be booked should be avoided; (vii) June 17, The Foreign Ministry announced that it will lift its advice against non-essential travel to 10 European countries (Greece, Croatia, Spain, Italy, Portugal, Slovenia, France, Iceland, Belgium, Switzerland and Luxembourg) from June 30. For other European countries, the advice against non-essential travel will remain; (viii) July 2, Extension of temporary entry ban to Sweden until 31 August 2020 and easing of restrictions for more travellers; (ix) July 30, Sweden has lifted its advice against non-essential travel to four more countries: the Czech Republic, Denmark and Norway, and Switzerland. The ministry's recommendations against non-essential travel to other countries in the EU, EEA and Schengen area, as well as the UK, were extended until August 12; (x) August 13, the advice against unnecessary travel to Liechtenstein and Austria is lifted. Advice against non-essential travel to other countries within the EU, the EEA (European Economic Area) and the Schengen area as well as the United Kingdom is extended until August 26; (xi) September 15, Sweden will lift the ban on visits to care homes [update].