Sweden

Government Measure

A range of measures have been presented to make it easier for Swedish businesses, particularly small- and medium-sized businesses, to access finance at this difficult time, for example:

• Almi Företagspartner AB will receive a capital contribution of SEK 3b to increase its lending to small- and medium-sized businesses throughout the country.
• The Swedish Export Credit Corporation's (Sw. Svensk Exportkredit) (“SECC") credit framework will be increased from SEK 125b to SEK 200b and can be used to provide both state-supported and commercial credit to Swedish export companies.
• The Swedish Export Credit Agency (Sw. Exportkreditnämnden) (“EKN”) will decide on an expanded credit guarantee framework entailing inter alia an extension of the credit guarantee limit from SEK 450b to SEK 500b and implementation of new guarantees.

Eligibility

• Almi: Sweden based SMEs. Companies with more than 250 FTEs are not eligible. Applications can made by companies here.
• SECC SECC provides finance to export companies with turnover exceeding SEK 200m and the customers of such companies. Applications can made by companies here.
• EKN: EKN insures export companies and banks against the risk of non-payment in export transactions. Small- and medium-sized export companies, major export companies and their suppliers are eligible.

Supervising Authority

The Swedish Government, the Swedish Export Credit Corporation and the Swedish Export Credit Agency.

Availability

No set time period other than during 2020.

Government Measure

In order to support Swedish exporting companies, EKN has decided to implement the following new guarantees:

• New guarantee with coverage of 80% of the banks’ risk in working capital financing;
• new guarantee with coverage of 75% of the banks’ risk in working capital financing; and
• new guarantee for sub-suppliers in order to ensure that such sub-suppliers get paid more quickly and securely.

Eligibility

• New guarantee with coverage of 80%: This guarantee is offered in relation to bank loans to small and medium companies with turnover of less than SEK 5b and may be used by both exporting companies as well as their sub-suppliers.
• New guarantee with coverage of 75%: This guarantee is offered in relation to bank loans to large companies.
• New guarantee for sub-suppliers: This guarantee is offered in relation to sub-suppliers of large companies.

Supervising Authority

The Swedish Export Credit Agency

Availability

No set time period other than during 2020.  

Government Measure

The proposal means that the central government will guarantee 70 per cent of new loans banks provide to companies that are experiencing financial difficulty due to the COVID-19 virus but that are otherwise robust.

The guarantee will be issued to banks, which in turn will provide guaranteed loans to companies. A limit of SEK 75m per borrower has been proposed. The Swedish National Debt Office (Sw. Riksgälden) may grant exemptions from this limitation.

Eligibility

Non-financial companies with their main operations or domicile in Sweden. There is no formal limit on company size, however, the COVID-19 virus must have adversely affected the company’s finances.

Supervising Authority

The Swedish Government and The Swedish National Debt Office

Availability

The loans concerned are new loans and credit facilities that are granted during the period 1 April 2020 up to and including 30 June 2020, with the possibility of an extension of a maximum of three months.

Government Measure

The Government proposes that airlines should be able to receive credit guarantees in 2020 amounting to a maximum of SEK 5b, of which SEK 1.5b is intended for SAS.

Eligibility

Airlines that have a Swedish permit to operate commercial aviation activities and have their main operations or headquarters in Sweden.

Supervising Authority

The Swedish Government.

Availability

No set time period other than during 2020.

Please note that the state guarantees for loans are subject to the European Commission’s approval.

Government Measure

The Riksbank is offering the banks up to SEK 500b against collateral for onward lending to non-financial companies operating in Sweden.

To make the facility attractive to the banks, the loans will be granted at a variable interest rate equivalent to the Riksbank’s repo rate, at present 0 per cent, and they will have a maturity of two years.

Eligibility

Sweden based non-financial companies.

Supervising Authority

The Riksbank.

Availability

Available for banks from 20 March 2020.

Government Measure

The Riksbank has entered into a currency swap agreement with the Federal Reserve in order to improve access to US dollars for banks and their customers in a situation where the markets are functioning poorly.

Supervising Authority

The Riksbank.

Availability

No set time period other than during 2020.

Government Measure

The Riksbank has also decided to give institutions that are under the supervision of Finansinspektionen but are not monetary policy counterparties the opportunity to participate in the previously decided programme for lending to companies via banks (monetary policy counterparties). By signing a special agreement, these institutions shall be able to become temporary monetary policy counterparties. This is so that the loans reach more non-financial corporations.

Eligibility

Institutions under supervision of Finansinspektionen.

Supervising Authority

The Riksbank

Availability

Available from 26 March 2020

Government Measure

The Riksbank is now offering to purchase commercial paper issued in Swedish krona by Swedish non-financial corporations to a nominal total amount of SEK 32b. The first opportunity will be on 8 April, when the Riksbank offers to purchase commercial paper with a maturity of up to three months to a nominal amount of SEK 4b.

Eligibility

Swedish non-financial corporations with a credit rating equivalent to Baa3/ BBB- or higher

Supervising Authority

The Riksbank.

Availability

Between 8 April 2020 and 31 May 2020