Riksbank offers loans at fixed interest rate

Date 02/07/2009

The Executive Board of the Riksbank has decided to offer loans to the banks at a fixed interest rate and with a maturity of 12 months. This should contribute to lower funding costs for the banks and lower interest rates for companies and households.

The Riksbank’s assessment is that supplementary measures are needed to ensure that monetary policy can have the intended effect.

The Riksbank’s monetary policy counterparties will be offered loans in an auction to be held on 13 July. The minimum bid rate for the auction will be the repo rate with an addition of 0.15 percentage points. The loan volume offered is SEK 100 billion, with a payment date of 15 July 2009. The maturity of the loan is 350 days, that is, approximately 12 months.

Further information on the terms for the loans will be published on 9 July 2009 on the Riksbank’s website.