Rebirth of the Strongest Tycoon

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Chapter 1532: 200 billion bailout!

There are more than 200 listed companies on the Swedish stock market, which is not small in Europe.

In the face of large-scale international capital selling, it triggered a man-made stock market crash.

If you want to support the broader market, there is no doubt that the focus must be on supporting the constituent stocks of the Stockholm 30 Index.

These are the weather vanes!

However, the prices of these 30 stocks have been speculated to extremely high prices, and the market value of several leading companies has soared to more than 80 billion Swedish kronor.

Although it is now affected, the market value has fallen below 80 billion Swedish kronor, and is still falling rapidly.

But the funds required to handle such a huge release volume are terrifying.

Simply relying on the voluntary actions of financial companies that have suffered setbacks simply won't work.

In order to avoid financial systemic risks caused by stock market crashes.

Even further triggering social unrest.

The Swedish government acted decisively and summoned key figures from relevant departments and the financial industry to a meeting at the Prime Minister's Office.

The purpose is twofold.

The first is to integrate ideas and boost morale, and the second is to immediately discuss effective and effective bailout policies.

soon.

In the conference room of the Prime Minister's Office, five people were sitting around the table, and there was also a circle of staff sitting on the chairs outside.

The four people in the government are Prime Minister Ingvar Karlsson.

Riksbank Governor Harald Quinton.

Swedish Finance Minister Göran Pelton.

Steve Kamann, Director of the Swedish Financial Authority.

The only one left, without a doubt, is Peter Wallenberg.

At the critical moment, the only non-political figure who could participate in policy formulation was Peter Wallenberg.

Considering that the time was urgent, everyone didn’t talk too much.

Ingvar Karlsson went straight to the point: "The theme of this meeting is just one - bailout!"

"This man-made stock market crash has occurred, but we must minimize the impact, not only to protect our financial system and industry ecology, but also to boost the confidence of stockholders and even other residents."

"This is about the credibility of our government and the foundation of our governance!"

On the last word, Invar Karlsson specially emphasized the tone and prolonged it.

Several government officials sitting there looked at each other and nodded in unison.

If Ingvar Karlsson cannot become prime minister, then they will naturally have to step down.

Even if it is for your own position, you must do your best to cooperate.

Besides, you don’t have to pay for it yourself anyway…

The president of Sweden's central bank said without hesitation: "In response to this crisis, if we want securities companies to support themselves, one way is to solve their funding problem, and the other is to solve their confidence problem."

"The funding is very simple. We plan to release a total of 150 billion Swedish kronor to the market in the first phase through policies such as targeted RRR cuts of 3 points, re-lending, re-discounting, and lowering of re-loan and re-discount interest rates..."

Targeted RRR reduction is to reduce the minimum settlement reserve ratio for stock-related businesses. Although this will increase some risks in the long term, in the short term it will help to fully leverage the allocation capabilities of securities firms, rationally allocate company funds, alleviate liquidity pressure, and enhance shareholder returns and enhance investor confidence.

Re-lending refers to the central bank issuing loans to commercial banks based on their creditworthiness.

Rediscounting means that the central bank uses unexpired commercial bills in the hands of banks as collateral to release funds to banks.

Funds are directly released to securities companies and banks. When banks have money, they naturally dare to support securities companies, and securities companies have the confidence to take over. Not to mention that the re-loan and re-discount interest rates have dropped, further reducing the cost of using funds.

The 150 billion first-stage funds released by such a policy will undoubtedly be a super shot in the arm for the market.

Of course, printing money and putting it into the market, even if there is collateral, will definitely have negative effects, such as devaluing the Swedish krona.

At this time, the Swedish government really needs the Swedish krona to depreciate.

There is also a lot of pressure in the currency market.

Ingvar Karlsson nodded with satisfaction and moved his eyes to Finance Minister Yoram Pelton.

The latter immediately said: "Mr. Prime Minister, our plan is to use the pension fund under the Ministry of Finance to enter the market. The first phase of the investment will reach 50 billion crowns, and the maximum investment can be 100 billion crowns!"