Swedbank pulls out of state bank rescue plan

TT/The Local
TT/The Local - [email protected]

Swedbank's board has announced that the bank will leave the Swedish government's bank rescue programme with immediate effect as the bank credit market has stabilized.


The bank pointed out in a statement announcing its decision on Friday that Swedbank had not had cause to borrow under the programme since July 2009.

"Achieving financial independence was one of the main arguments behind Swedbank's rights issue in August 2009. Leaving the formal government guarantee programme is another step in the process," said CEO Michael Wolf.

The state guarantee programme gave the bank access to finance during the turbulent period from autumn 2008 until summer 2009. The guarantee has been a key factor in the Swedish banking system remaining relatively strong during and after the financial crisis, Swedbank chairperson Lars Idermark said.

Swedbank has borrowed 200 billion kronor ($27.7 billion) since July 2009 in long-term financing from sources outside the state loans programme.

During the first quarter of this year, the bank has borrowed 100 billion kronor, which represents more than two-thirds of total long-term loans which will fall due during the year, the bank wrote.

Swedbank has borrowed a total of 412.2 billion kronor within the state guarantee since 2008. 234.8 billion kronor is made up of short-term maturities. At the end of the first quarter of this year, Swedbank had 201.5 billion kronor in outstanding loans.


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