Borg blasts Swedish banks’ Baltic bonanza

Finance Minister Anders Borg has lambasted Swedish banks for their "careless expansion" in the Baltic region as the Swedish krona felt the pinch on Wednesday from a deepening crisis in Latvia.

Developments in Latvia contributed to a weakening of the krona against the euro, closing at 10.88 kronor, and the dollar (7.67 kronor).

“The economic situation in the Baltic region has become considerably worse and the government there is working intensely to stabilize the situation,” said Borg at a hastily convened press conference on Wednesday aftenoon.

The finance minister came down hard on Swedish banks which are currently facing major credit losses in the region.

“The banks have carried out a careless credit expansion in the Baltic that has led to major profits, and it is the banks that must face the consequences,” he said.

Latvia’s economic woes deepened on Wednesday as the treasury tried and failed to sell any debt securities.

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