Sweden
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
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01/04/2020 |
Public guarantees |
Non-financial corporations |
The state guarantees 70 percent of new loans from the banks to companies. The guarantee is issued to the banks, which in turn issue guaranteed loans to the companies. Loans concerned are new loans and credit facilities that are granted during the period 1 April 2020 up to and including 30 September 2021. Loan maturity of up to three years. |
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01/03/2020 |
Direct grants |
Non-financial corporations |
Direct support to cover parts of businesses' fixed costs. To be eligible for the support, the business must have had a turnover of at least SEK 250 000 during the past financial year and a loss of turnover of at least 30 per cent during March and April 2020 (compared to corresponding months last year). In May 2020 the loss of turnover has to be at least 40 per cent, and in June and July 2020 it has to be at least 50 per cent, for eligibility. The size of the support will depend on how large the loss in turnover has been and may vary from 22.5 to 75 per cent of businesses's fixed costs excluding wages costs from March-July 2020. The measure will be extended through August-December 2020. During August-October, the business must have had a loss of turnover of at least 40 per cent compared to last year, while the corresponding number is 30 per cent for November-December. The maximum size of support is 70 per cent of businesses's fixed costs. Smaller businesses will continue to receive maximum 75 per cent of their fixed costs in August-October, but it will be raised to 90 per cent in November-December. After the introduction of new restrictions, the measure has been extended further over January-September 2021. During this time period, the business must have had a loss of turnover of at least 30 per cent compared to the corresponding months in 2019. The level of support remains the same as in November-December 2020. Businesses especially affected by specific restrictions can receive strengthened support during June 2020 – September 2021. |
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N/A |
Direct grants |
All non-financial sector |
N/A |
|
N/A |
Direct grants |
Non-financial corporations |
N/A |
|
03/04/2020 |
Tax deferrals |
Non-financial corporations |
Deferment of VAT for companies with annual payments. The measure has been extended, and covers two accounting periods, i.e. two years (one year before), during which defferal can be approved for one years' tax payments. Maximum deferment 24 months (12 months before). |
|
03/04/2020 |
Tax reliefs |
Non-financial corporations |
Temporary reduction of employers’ social security contributions. |
|
25/03/2020 |
Tax deferrals |
Non-financial corporations |
Deferment with payment of employer contributions, preliminary tax on salary and VAT for companies with monthly or quarterly payments. The measure has been extended and defferal can be approved for seven months' tax payments (three months before). Maximum deferment 24 months (12 months before). For companies with quarterly payments, deferral can be approved for two quarters' tax payments. |
|
20/03/2020 |
Public loans |
Non-financial corporations |
Increased loan facilities. |
|
01/04/2020 |
Direct grants |
Non-financial corporations |
Temporary discount for rental costs in exposed industries. |
|
20/03/2020 |
Public guarantees |
Non-financial corporations |
Increased credit guarantees to export companies. |
|
22/04/2020 |
Direct grants |
Households |
The unemployment insurance fund is strengthened with an additional 6 billion SEK in 2021. |
|
09/04/2020 |
Direct grants |
Households |
The state wage guarantee fund, through which employees at companies that goes bankrupt are guaranteed to receive their wage, is increased by 1.6 billion SEK. |
|
08/12/2020 |
Tax reliefs |
Non-financial corporations |
A temporary tax relief on investments in equipment made in 2021. A company that has a calendar year as a tax year can benefit from the tax reduction during the financial year that begins on 1 January 2022. |
|
16/03/2020 |
Direct grants |
All non-financial sector |
Short-time layoffs. Implies that employers can reduce their employees’ working hours and receive financial support from the central government to compensate for costs for retaining the employee. |
|
01/04/2020 |
Direct grants |
Non-financial corporations |
Government assume sick pay responsibility until 31 July 2020. The measure has been extended in time and modified so that the government will compensate employers for higher sick pay costs than what can be considered normal during the time period 1 August 2020 to 30 September 2021. |
|
01/06/2021 |
Direct grants |
Non-financial corporations |
Financial support to organizers of events that were/are planned to take place during the time period June-December 2021, but that could not/cannot be carried out or that were/are significantly limited due to restrictions at the time the decision to cancel/limit the event was taken. |
|
01/12/2021 |
Direct grants |
Non-financial corporations |
Government assume sick pay responsibilit. The measure has been extended in time and modified so that the government will compensate employers for higher sick pay costs than what can be considered normal. |
|
08/12/2021 |
Direct grants |
Non-financial corporations |
Financial support to organizers of events that could not/cannot be carried out or that were/are significantly limited due to restrictions at the time the decision to cancel/limit the event was taken. |
|
17/12/2021 |
Direct grants |
Non-financial corporations |
Direct support to cover parts of businesses' fixed costs. To be eligible for the support, the business must have had a turnover of at least SEK 250 000 during the past financial year and a loss of turnover of at least 30 per cent. during The size of the support will depend on how large the loss in turnover has been and may vary from 22.5 to 75 per cent of businesses's fixed costs excluding wages costs. |
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17/12/2021 |
Tax deferrals |
Non-financial corporations |
Possibility for corporations to obtain deferrals on taxes, VAT payments and employer social contribution payments. Also possibly to apply for retroactive deferrals. |
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14/04/2020 |
Borrower-based measure |
Households |
On 14 April 2020, Finansinspektionen’s Board of Directors decided that the proposal communicated on 2 April would go into effect as of 14 April 2020. This means that banks are able to grant both new and existing mortgagors a time-limited exemption from the requirement on amortisation. The exemption applies to amortisation payments through 31 August 2021. For new mortgagors, the bank must ensure in its credit assessment during the lending process that there is capacity to make amortisation payments even if an exemption is granted. FI will communicate no later than at the end of April 2021 whether this date will continue to apply or if the circumstances prevailing at that time will require an extension. |
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16/03/2020 |
CCyB |
Banking sector |
On 16 March 2020, Finansinspektionen lowered the countercyclical buffer rate by 2.5 percentage points and set it at 0 per cent. This buffer rate was applied as of 16 March 2020. FI communicated that FI did not expect to change the new buffer rate for at least the next twelve months. This meant that any subsequent increases would not be expected to go into effect earlier than March 2022. |
|
07/04/2020 |
Other measure |
Banking sector |
The Swedish National Debt Office has decided, to extend the phase-in period for the banks to meet MREL with own funds and subordinated liabilities to 1 January 2024 (from 1 January 2022) |
|
14/04/2020 |
Lending standards |
Banking sector |
On 14 April 2020, Finansinspektionen announced its view on the application of the EBA’s new guidelines on moratoria, published on 2 April 2020. It is Finansinspektionen's opinion that general guidelines on exemption from the requirement on amortisation on special grounds for mortgages and payment reliefs for small and mid-size firms' existing loans resulting from the establishment of a government guarantee programme for companies (under which the Swedish National Debt Office issues loan guarantees) are measures that meet the criteria on general moratoria in accordance with the EBA guidelines. |
|
14/04/2020 |
Other measure |
Securities and markets |
Finansinspektionen announced that Finansinspektionen agrees with the public statement issued by ESMA on 9 April 2020 concerning the obligations of fund managers to publish yearly and half-yearly reports. |
|
20/03/2020 |
Buffer usability |
Insurance sector |
Finansinspektionen publishes a press release with the message that insurance undertakings and occupational pension funds should use their buffers. |
|
23/03/2020 |
Reporting requirements |
Insurance sector |
Finansinspektionen announces that it will comply with EIOPA's recommendations, published on 20 March 2020, on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure. |
|
24/03/2020 |
Dividend distribution policy |
Banking sector |
On 24 March 2020, Finansinspektionen announces that it is sending a letter to all banks and credit market companies under Finansinspektionen's supervision in the next few days that will urge the boards of directors to immediately modify their proposed dividends and the spring's annual general meetings to resolve not to pay any dividends. |
|
25/03/2020 |
Other measure |
Banking sector |
Finansinspektionen announces that it agrees with EBA's statement on 25 March 2020 on the application of the prudential framework in light of COVID-19 measures. |
|
25/03/2020 |
Other measure |
Securities and markets |
Finansinspektionen announces that it agrees with ESMA's statement on 25 March 2020 on some accounting implications of the economic support and relief measures adopted by EU Member States in response to the COVID-19 outbreak. |
|
27/03/2020 |
Other measure |
Securities and markets |
Finansinspektionen announces that it agrees with ESMA's statement on 27 March 2020 on the impact of the Covid-19 pandemic on the ability of issuers to fulfil the deadlines for publishing financial reports, which apply to listed issuers under the Transparency Directive. |
|
01/04/2020 |
Reporting requirements |
Banking sector |
Against the background of the EBA statement on 31 March 2020 regarding flexibility in reporting dates, Finansinspektionen clarified, that Finansinspektionen would assess the need for easing of the reporting requirement in every individual case. Finansinspektionen may agree to extend the reporting date by up to one month for the European reporting with submission date until 31 May 2020. |
|
31/03/2020 |
Reporting requirements |
All financial sectors |
In accordance with the EBA statement on 31 March 2020, Finansinspektionen has postponed the deadline for the annual reporting on money laundering and financing of terrorism, from 31 March 2020 to 30 April 2020. |
|
06/04/2020 |
Credit facilities |
Non-financial corporations |
Extending the 50 billion lending programme to also cover sole proprietors |
|
08/05/2020 |
Asset purchase programme |
Non-financial corporations |
Extending the purchase of commercial paper to those with longer maturity, up to 6 months and also extending the program in time until last of September. |
|
12/03/2020 |
Credit facilities |
Non-financial corporations |
Lending 500 billion SEK to non-financial corporations, via the banking system at a rate equal to the repo rate (as long as lending to non-financial corporations increase by at least 20% of the amount borrowed in this facility, otherwise the rate will be repo rate + 20 basis points). |
|
16/03/2020 |
Asset purchase programme |
All sectors |
Purchasing government, municipal and covered bonds for up to 300 billion SEK during 2020. |
|
16/03/2020 |
Credit facilities |
All financial sectors |
Reducing the lending rate for overnight loans to banks from 0.75 to 0.20 percentage points above the repo rate. |
|
16/03/2020 |
Credit facilities |
All financial sectors |
Offering banks 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. |
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16/03/2020 |
Credit facilities |
All financial sectors |
Increasing flexibility with regard to the collateral banks can use when they borrow money from the Riksbank, which will, among other things, give banks more scope to use mortgage bonds as collateral. |
|
19/03/2020 |
Swap lines |
All financial sectors |
The Riksbank and the US Federal Reserve have agreed on a swap facility of USD 60 billion. |
|
19/03/2020 |
Credit facilities |
All financial sectors |
Removing limit rules for covered bonds and allowing covered bonds issued by the counterparty as collateral. |
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19/03/2020 |
Asset purchase programme |
All sectors |
Buying commercial paper. |
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26/03/2020 |
Asset purchase programme |
All sectors |
Extending the 300 billion asset purchase programme to also cover commercial paper. |
|
26/03/2020 |
Credit facilities |
All financial sectors |
Enlarging the circle of counterparties. |
|
03/09/2020 |
Supervisory expectations |
Banking sector |
Finansinspektionen publically announced it will not make use of the option provided in the EBA guidelines (EBA/GL/2020/10) for a pragmatic and flexible approach to the 2020 supervisory review and evaluation process (SREP). Finansinspektionen will continue to follow the existing SREP guidelines also for this year's SREP but with an extended timeline. |
|
01/07/2020 |
Asset purchase programme |
Non-financial corporations |
Extending the asset purchase programme to 500 billion SEK and until June 30 2021 |
|
01/07/2020 |
Asset purchase programme |
Non-financial corporations |
Extending the asset purchase programme to cover corporate bonds, up to a maxiumum of 10 billion SEK until 30 June 2021 |
|
01/07/2020 |
Credit facilities |
All financial sectors |
Reducing the lending rate for overnight loans to banks from 0.20 to 0.10 percentage points above the repo rate. |
|
01/07/2020 |
Credit facilities |
Non-financial corporations |
Extending the maturity for loans to monetary policy counterparties for onward lending to non-financial corporations to up to four years and reducing the interest supplement if criteria for onward lending are not met from 0.2 percentage points to 0.1 percentage points. |
|
26/11/2020 |
Asset purchase programme |
All sectors |
Extending the asset purchase programme from 500 bn SEK to 700 bn SEK, extending the period until the end 0f 2021 and extending the scope to also include green government- and municipal bonds as well as Swedish treasury bills |
|
02/12/2020 |
Lending standards |
Banking sector |
On 2 December 2020, Finansinspektionen announced that Finansinspektionen intends to follow the EBA guidelines on moratoria, which were reactivated on 2 December 2020. |
|
30/06/2020 |
Dividend distribution policy |
All financial sectors |
On 30 June Finansinspektionen reiterated the ESRB recommendation on restriction of distributions during the COVID-19 pandemic (ESRB/2020/7). Finansinspektionen presented the ways in which Finansinspektionen had communicated to the financial institutions under its supervision on dividends and distribution policies. |
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18/12/2020 |
Dividend distribution policy |
All financial sectors |
On 18 December, Finansinspektionen published a press release with the message that Finansinspektionen expects banks, including credit institutions and other financial firms such as insurance companies, to be restrictive with dividends and share buybacks until 30 September 2021. During this period, total dividends from and buybacks by the banks should not exceed 25 per cent of their aggregate net earnings for the two financial years 2019–2020. FI announced its recommendation in conjunction with the announcement by the ESRB of its decision to update the previous ESRB recommendation on financial firms' distribution of capital during the coronavirus pandemic. |
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28/09/2021 |
CCyB |
Banking sector |
On 28 September 2021, Finansinspektionen decided to raise the countercyclical buffer rate to 1 per cent. The new buffer rate will be applied as of 29 September 2022. Until then, the buffer rate will remain at 0 per cent. |
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20/09/2021 |
Credit facilities |
Non-financial corporations |
The programme for funding to banks to support corporate lending is terminated. |
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20/09/2021 |
Credit facilities |
All financial sectors |
The possibility to apply to the category of temporary monetary policy counterparty is removed. |
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20/09/2021 |
Credit facilities |
All financial sectors |
The decision on amended limit rules for covered bonds as collateral for credit at the Riksbank is revoked. |
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20/09/2021 |
Credit facilities |
All financial sectors |
The offer of 3- and 6-month loans to monetary policy counterparties is discontinued. |
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21/06/2022 |
CCyB |
Banking sector |
On 21 June 2022, Finansinspektionen decided to raise the countercyclical buffer rate to 2 per cent. The new buffer rate will be applied as of 22 June 2023. A countercyclical buffer rate of 0 per cent has been applied since 16 March 2020. FI decided then to lower the countercyclical buffer rate from 2.5 to 0 per cent, and the new rate went into force immediately. On 28 September 2021, FI decided to raise the countercyclical buffer rate to 1 per cent, which will be applied starting on 29 September 2022. |
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