Covid-19

Sweden deploys $52b to help companies

Sweden’s central bank says it will lend up to 500 billion kronor ($52 billion) to companies via the banks to keep them from “being knocked out as a result of the spread of the coronavirus.”

In a statement, the Riksbank said the ” turbulence on the financial markets means that companies that are essentially robust may experience funding difficulties,” central bank governor Stefan Ingves said.

“It is then important that the banks continue to provide these companies with loans so that the credit supply is not threatened.

The measures taken in this situation should be regarded as a form of insurance that enables Swedish companies -— particularly small and medium-sized enterprises – to feel secure that the credit supply will not fail.”

The central bank of non-European Union member Norway said Friday it had decided to reduce the policy rate by 0.50 percentage points to 1 per cent. European markets have opened mostly higher after a turbulent trading session in Asia.

Shares rose in Paris and London but fell 6.1per cent in Japan following Wall Street’s biggest drop since the 1987 Black Monday crash.

Yesterday the 13th brought wild swings for some markets as governments stepped up precautions against the spread of the new coronavirus and considered ways to cushion the blow to their economies.  

India’s Sensex gained 4 per cent after plunging 10 per cent when it opened, triggering a brief halt to trading.

US futures were up more than 2 per cent after the Federal Reserve and European Central Bank pledged more support for markets churned by a cascade of shutdowns across the globe.

 

Covid-19

Sweden deploys $52b to help companies

Swedens central bank says it will lend up to 500 billion kronor ($52 billion) to companies via the banks to keep them from being knocked out as a result of the spread of the coronavirus. In a statement, the Riksbank said the turbulence on the financial markets means that companies that are essentially robust may experience funding difficulties, central bank governor Stefan Ingves said. It is then important that the banks continue to provide these companies with loans so that the credit supply is not threatened. The measures taken in this situation should be regarded as a form of insurance that enables Swedish companies - particularly small and medium-sized enterprises to feel secure that the credit supply will not fail. The central bank of non-European Union member Norway said Friday it had decided to reduce the policy rate by 0.50 percentage points to 1 per cent. European markets have opened mostly higher after a turbulent trading session in Asia. Shares rose in Paris and London but fell 6.1per cent in Japan following Wall Streets biggest drop since the 1987 Black Monday crash. Yesterday the 13th brought wild swings for some markets as governments stepped up precautions against the spread of the new coronavirus and considered ways to cushion the blow to their economies. Indias Sensex gained 4 per cent after plunging 10 per cent when it opened, triggering a brief halt to trading. US futures were up more than 2 per cent after the Federal Reserve and European Central Bank pledged more support for markets churned by a cascade of shutdowns across the globe.