Swedish central bank to offer SEK 400 bln in loans to banks

The Swedish central bank will offer 400 billion Swedish crowns ($38.8 billion) in loans to banks to encourage them to increase their lending to companies, as part of a previously announced package, it said on Monday.

The loans will be offered on four occasions between March 27 and April 17 at a variable interest rate equivalent to the Riksbank's repo rate, presently 0%. They will have a maturity of 2 years.

The Riksbank has launched an asset purchase programme, a loan package to banks and a dollar swap deal with the Federal Reserve to help the Swedish economy through the coronavirus crisis. ($1 = 10.3065 Swedish crowns)