• Sweden's news in English

Borg critical of possible eurozone bank bailouts

TT/The Local/vt · 12 Nov 2010, 16:25

Published: 12 Nov 2010 16:25 GMT+01:00

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Although Borg did not mention anyone by name, he singled out the ideas that German Chancellor Angela Merkel's government has put forward.

"We had a stabilisation in the market. However, after the statements that were made in connection with the last European Council, these problems came back," Borg said on Friday.

Borg is especially concerned that private lenders such as banks may have to take a hit if eurozone countries with strained public finances such as Ireland are forced to suspend payments and ask for help.

"There have been individual member countries that have also publicly pursued the line that debt restructuring is on the agenda. I think that it has been an unfortunate thing. It remains a heavy responsibility on those who are initiating this discussion to ensure that it is resolved in a way that we regain stability," said Borg.

In principle, it may come across as reasonable for private investors to write off the debts if eurozone public finances collapse so that taxpayers do not shoulder the entire burden, according to Borg. However, such a discussion is premature.

"This is an essential discussion that is best to bring up when we have a concrete proposal in place to present. If we bring up the discussion before we have a proposal, we contribute to creating market uncertainty and that I think in this case has contributed to getting into these pressing problems," he said.

According to Borg, it is also crucial that the Irish government is capable of managing a credible reorganisation policy with budget constraints.

"It is now about us creating clarity about what will happen in the short term so that we can contribute to the stabilisation of the situation in Ireland," he said.

Ireland has not yet applied for emergency financial assistance from the EU, said a spokesman for the European Commission at a press conference in Brussels, according to Reuters on Friday.

The statement was made in light of rumours on the financial markets that an aid package of €80 billion euros ($109.13 million) has already been decided on and should be announced next week.

The consequences of the new wave of rate worries in the eurozone could, if they continue, quickly push up Swedish mortgage rates, according to Pär Magnusson, chief Nordic analyst at the Royal Bank of Scotland (RBS).

Story continues below…

The anxieties deal with a similar risk premium that hit the market after former investment bank Lehman Brothers went under in September 2008.

Underlying upward pressure on mortgage rates has already built up in the autumn as a direct result of Sweden's central bank, the Riksbank, substantially reducing the volume of its cheap credit to the banks in the form of so-called repurchase agreements.

However, a new external shock is looming and may hit quickly, warned Magnusson.

"Even rock-solid investments such as Swedish mortgage bonds have taken an undeserved beating in the panic that has taken a hold of this. It is not about the creditworthiness of Swedish banks. It is purely a risk-shock effect," he explained.

TT/The Local/vt (news@thelocal.se)

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Your comments about this article

17:47 November 12, 2010 by McChatter
@The Local:

How on earth do you translate these quotes - digitally or do you just employ lousy interpteters? "..when one has a concrete proposal that people can show for." Huh? I thought this was supposed to be "Sweden's news in English" and not "Sweden's news in pidgin English". Buck up!
22:15 November 12, 2010 by visitorfromnowhere
@The Local:

I have to agree with #1. And I don't think it is just the quotes. You really need to get idiomatic English under better control here at The Local. The lead paragraphs in roughly 20% of the articles are almost impenetrable--the dreaded Swenglish that I was warned about. I'm not really looking for work, but send me an email if you want and maybe I can help you part time from home!
01:49 November 13, 2010 by JoeSwede
Awesome article. Tell it like it is Borg.

Swenglish... could you please supply some examples. Did I just jump over those sections? As a Swedish American I'm programmed to jump over or reinterprit Swenglish. Maybe I write some Swenglish myself....
10:59 November 13, 2010 by calebian22
1 and 2, you can always read DN instead. No doubt your Swedish needs to be improved. In general, nice work Local.
14:35 November 13, 2010 by visitorfromnowhere
@ JoeSwede.

OK, let's just look at this article. The following numbers refer to paragraphs.

3) "come" should be "came",

4) rambling sentence that, at a minimum, requires commas, and probably should be broken up and rewritten,

5) "in a way" should be "in such a way",

6) "is capable" should be "be capable",

7) "to getting" should be "to our getting",

9) "happen the short term" should be "happen in the short therm",

10) too many qualifiers, "at..in..according...on", ugh, needs to be rewritten,

11) " on the financial markets" should be "in the financial markets" or "that the financial markets", "should be announced" should be "will be announced" or "could be announced",

14) "in the autumn" should be "this autumn", "volumes" should be "volume",

16) " taken a hold of this" should be "taken hold".

@calebian22. lol. Non-sequitur. No doubt your Chinese needs to be improved. You know nothing at all about my linguistic ability. I intensively study five languages and love it when someone corrects my errors. In fact, I will soon be participating in the discussions at DN and elsewhere and will be very thankful if someone takes the time to correct my errors. But go ahead being thin skinned. Maybe someday you'll have a chance to pull out some Swenglish and talk about the "small people" affected by an environmental catastrophe.
17:16 November 13, 2010 by zircon
And what do Swedish financial analysts say long or short term from all these resolutions?
18:22 November 13, 2010 by calebian22

I know enough to know that you are irritating, most likely in any language.
18:49 November 13, 2010 by visitorfromnowhere
@calebian22 You need ad-hominems to get through the day evidently, but I'm annoying. Riiiigghhht. Riiiggghht.
20:42 November 13, 2010 by calebian22

Being critical of the Local, that provides a free online English newspaper is irritating. You call it an ad hominem fallacy I call it an accurate assessment of an arrogant know-it-all with nothing better to do than criticize Swedes providing you a convenient service. So there are some mistakes? Big deal! The fact that you don't seem to realize that your criticisms make you sound overbearing and boorish seems to escape you.
05:28 November 14, 2010 by JoeSwede

You came up with a laundry list of items. I'll have to think of it more.....

I do apreciate the translation as they have helped me understand modern Sweden much better than my limited travels within Sweden (which was always to visit relatives).

Financial issues are also a little bit more difficult to convey but again the fact that they are discussed is a huge plus to me.
11:16 November 14, 2010 by visitorfromnowhere
@Calebian22 Pleezeee, The Local is not doing charity work. And JoeSwede wanted the list. I was providing him a service. I should know that teaching is a thankless task. And by the way Calebian, you are really the one with a chip on your shoulder, itching for a fight. Anyway, we're done. I'll give you the last word because I'm sure you're insecure little ego can't live without it. Prove me wrong and pass. But I don't think you will.
12:08 November 14, 2010 by calebian22

Indeed I do have a chip on my shoulder. Arrogant native English speakers make all of us look bad. Why would I let that pass? Being proud of being born into a language system is really rather ridiculous. Additionally, constructive criticism does not begin with slamming an organization with a random percentage about the inpenetrability of their articles. (20%, really? Maybe your language comprehension needs some work) It is fortunate that you are not looking for work, since being heavy-handed does not fly particularly well in Sweden. A little humility will go a lot farther than trying to show off your "big brain."

I do find it funny that you brought the "last word" argument in so early. It is always a sign of insecurity on the initiator's part that their position is weak. You started off slamming the Local and now you want to take it back onto the high road? Who is actually trying to protect their ego, here?
16:01 November 14, 2010 by riose
Visitor wins!

@calebrian & @Joe, The Local crappy Swenglish is remarkable.

Sometimes I need to read the articles twice or three times to understand something.
08:46 November 15, 2010 by calebian22
I guess working as a service engineer in countries where English is not widely spoken has given me a different perspective on communication. Being able to communicate and understand the locals because of an attempt by non-native English speakers inspires gratitude in me rather than criticism. While the copy editing could be improved at the Local (as could editing in the UK and the US) I don't find it to be a roadblock to comprehension. I am thankful that the Local exists.
13:32 November 15, 2010 by Random
I think it is pathetic that everyone is complaining about lousy english...

The local seems more like a forum for people to complain about Sweden or bad Swedish....you are all a pack of moaners!!

I am from an english speaking country, and it embarrases me how picky and complaining everyone is (ooh - notice my bad english...)

Who cares...no wonder you people all seem miserable here...you will all grow up to be grumpy old men/woman if you are looking for the little things to complain about....

Lighten up a little...Who really cares...The world is not going to end...is it??
16:42 November 15, 2010 by visitorfromnowhere
"J'ai toujours honoré ceux qui défendent la grammaire, ou la logique. On se rend compte cinquante ans après qu'ils ont conjuré de grands périls." -Proust
17:02 November 15, 2010 by calebian22
Until you become a renowned essayist like Proust you will not be honored for being critical of grammar. Until then you will remain an arrogant boor.
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