Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||SEK19,824,000,000||USD2,015,586,634|
|01A - Short-term lending info_outline||
No amount/estimate: March, The Riksbank is offering the banks the opportunity to borrow an unlimited amount of money on a weekly basis against collateral at three months’ maturity at an interest rate of 0.20 percentage points above the repo rate. The aim is to strengthen banks' acces to liquidity, and it is a new measure to mitigate the effects of the corona pandemic.
|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). Peak on claims on residents inside Sweden denominated in foreign currency amounted to SEK19.824 billion [update].
|02 - Credit creation info_outline||SEK657,075,000,000||USD66,807,485,245|
|02A - Financial sector lending/funding info_outline||SEK602,000,000,000||USD61,207,786,200||
(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 June 19, loans for onward lending amounted to SEK162 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. As of June 19, amount purchased was equivalent to SEK90 billion [update]; (iii) May 15, Until 30 September 2020, the Riksbank is offering to purchase municipal bonds for SEK 30 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. As of June 19, total purchases of municipal bonds amounted to SEK12 billion [update].
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) 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%; (ii) Temporary recognition of all credit institutions under the supervision of the Swedish Financial Supervisory Authority (FSA) as counterparties, enabling them to access the new lending facility; (iii) Easing of countercyclical capital buffer by 2.5 percentage points; (iv) 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); (v) The Swedish FSA has urged supervised banks and credit institutions to refrain from paying dividends or buying back shares.
|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|
|05 - Government support to income/revenue||SEK463,081,000,000||USD47,083,326,979|
|05A - Health||SEK47,450,000,000||USD4,824,434,311||
(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.
|05B - Non-health||SEK415,631,000,000||USD42,258,892,668||
(i) March 16, SEK20 billion subsidy for short-term lay-offs; (ii) March 20, SEK500 million (EUR45 million, 0.01% of GDP) 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.
|06 - Budget reallocation info_outline|
|07 - Central bank financing government||SEK25,500,000,000||USD2,592,688,618|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities||SEK25,500,000,000||USD2,592,688,618||
(i) 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); (ii) 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; (iii) 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. As of June 19, total government bond purchases amounted to SEK24 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).
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided||SEK6,900,000,000||USD701,551,038|
|09A - Swaps info_outline|
|09B - International loans/grants||SEK6,900,000,000||USD701,551,038||
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 [update].
|10 - No breakdown|
|11 - Other Economic Measures||
(i) On 24 March, the FSA stressed that it expects credit institutions to stop this year's dividend payments and use the earnings to further strengthen their capital; (ii) 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; (iii) 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 [update]; (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 [update].