• Sweden's news in English

Estonia agrees to repay emergency Swedbank loan

AFP/The Local · 29 Oct 2009, 14:18

Published: 29 Oct 2009 14:18 GMT+01:00

Facebook Twitter Google+ reddit

"The Estonian finance ministry decided on Thursday that due to the improved economic situation, Estonia will return to Swedbank the €50 million Estonia borrowed in May 2009," ministry spokeswoman Piret Seeman told AFP.

"We are convinced now that we can manage without the loan," she said.

The loan will be repaid in full on November 12, she added.

Swedbank is a key player in the financial market of Estonia and fellow Baltic states Latvia and Lithuania. The trio have been among Europe's hardest-hit nations in the deepest global economic slump since the 1930s.

Sweden has been at the forefront of efforts to shore up their floundering economies, given the heavy exposure of Swedish investors.

When it tapped Swedbank for the loan in May, Estonia said one goal was to increase the state's liquid assets in the face of slumping revenues.

"There is simply no need to keep that money on our account any more. We can make all the necessary payments from the state budget this year without needing to use that loan," said Seeman.

"Paying it back now and not in June 2010 -- as was agreed in May -- will help us save 45 million kroons ($4.25 million)" in interest, she added.

Estonia, which shifted rapidly from a communist command economy to the free market after independence from the Soviet bloc in 1991, had enjoyed a reputation as a "tiger" in the European Union, which it joined in 2004.

This country of 1.3 million people boasted growth of 10.4 percent in 2006 and 6.3 percent in 2007.

But Estonia slid into recession last year, with its economy shrinking by 3.6 percent. Tallinn has warned that output could contract by up to 15.3 percent this year.

Story continues below…

However, data indicate that the recession is easing.

Output shrank by a seasonally-adjusted 3.4 percent in the second quarter of this year compared with January to March, after having contracted by 6.0 percent in the first quarter.

Estonia is due to issue third-quarter figures on November 13.

AFP/The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Your comments about this article

23:39 October 29, 2009 by Leprehcaun
Well that's good news for everyone; Swedbank loses the interest but they need money right now anyway so it weighs up.

@ TL

No country has ever had a communist economy. In a communist economy there is e.g. no currency, no monetary system; no taxes or wages (well.. at least no money kind of a wage) and no government.
Today's headlines
Sweden: Russian warships in the Baltic 'worrying'
Swedish Defence Minister Peter Hultqvist. Photo: Vilhelm Stokstad/TT

Two Russian warships equipped with long-range missiles have entered the Baltic Sea after passing Denmark.

Why businesses are worried about Sweden's drone ban
A drone filming in Stockholm. Photo: Pontus Lundahl/TT

The Local investigates what Sweden's new drone ban could mean for businesses in the country.

This is the new top boss of Swedish Ericsson
Börje Ekholm. Photo: Magnus Hjalmarson Neideman/SvD/TT

Telecoms giant Ericsson has appointed a new CEO after a turbulent year for the company.

These are Sweden's best universities: ranking
A new university ranking has been released. Photo: Cecilia Larsson Lantz/Imagebank.sweden.se

At least according to this global ranking, which picks 12 Swedish universities among the top-1000.

Swedish pharmacies restrict paracetamol sales for teens
The move is intended to cut paracetamol overdoses. Photo: Nora Lorek/TT

Sweden's pharmacies are banning teens under 18 from buying more than one pack of pills at a time.

The Local List
12 Swedish words with just awesome literal translations
A filthy-minded lobster, i.e. a snuskhummer. Photo: Gorm Kallestad/NTB scanpix/TT

One of our favourite things about the Swedish language is its wonderful compound words, which range from being utterly bizarre to making perfect sense.

Rwandan genocide suspect held in Sweden
A memorial centre in Kigali, Rwanda. Photo: Ben Curtis/AP

A man has been arrested in Sweden suspected of involvement in the 1994 Rwandan genocide which claimed 800,000 lives.

Sweden can extend border controls, EU says
A police officer carrying out a check at Sweden's border with Denmark. Photo: Emil Langvad/TT

EU countries including Sweden should be granted permission to extend temporary border controls by a period of a further three months, the European Commission has decided.

Nobel Prizes
'I'd say he's arrogant but I'd be lying': Swedes on Bob Dylan
Bob Dylan performing in France. Photo: David Vincent/AP

Almost two weeks have passed since Bob Dylan was awarded the Nobel Prize in Literature and he has yet to acknowledge the win. The Local asked Swedes what they think of the singer's silence.

Sweden cuts 2016 refugee forecast by thousands
A Swedish migration authority office in Stockholm. Photo: Maja Suslin/TT

The country has also slashed its prediction for 2017.

Sponsored Article
Stockholm: creating solutions to global challenges
Property of the week: Kungsholmen, Stockholm
Sponsored Article
Last chance to vote absentee in the US elections
Will Swedes soon be looking for fairtrade porn?
The Local Voices
'I simply don’t believe in nationality'
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
This is Malmö: Football capital of Sweden
Why we're convinced Game of Thrones is based on Sweden
Sponsored Article
Where is the Swedish music industry heading?
People-watching: October 21st-23rd
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Angry elk chases Swede up a lamp post
Sponsored Article
Swedish for programmers: 'It changed my life'
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
People-watching: October 20th
Sponsored Article
Top 7 tips to help you learn Swedish
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Swede punches clown that scared his grandmother
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
Stockholm: creating solutions to global challenges
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Property of the week: Linnéstaden, Gothenburg
Sponsored Article
Where is the Swedish music industry heading?
Swedish school to build gender neutral changing room
Sponsored Article
One expat's strategy for making friends in Stockholm
People-watching: October 14th-16th
Sponsored Article
Nordic fashion in focus at Stockholm University
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
Sweden unveils Europe's first elk hut
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available