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'No Swedish loans to Spain': minister Borg

TT/The Local/vt · 18 Jan 2011, 08:52

Published: 18 Jan 2011 08:52 GMT+01:00

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"The problems that Portugal, Greece, Ireland and Spain have are because they have not maintained sufficiently responsible and austere economic policies," Borg said on Monday after a consultation with the committee on EU affairs of Sweden's parliament, the Riksdag.

"The countries that have problems have them because they have not been strict enough with their policies," he added.

However, according to Borg, Sweden has a responsibility to ensure the system works in Europe.

"Seeing that we have participated in the packages for Latvia, Iceland and Ireland, it has raised the bar for our participation in additional packages. There is a relatively low probability that we will do it," he said.

When asked if the system is less responsible for a country like Spain than for Ireland, Borg replied, "One has to make an overall assessment. Our assessment is that the bar has been raised gradually.

Spain, which fears having to ask for help from the EU and the IMF to manage its finances, cancelled on Monday a planned Thursday auction of 10- and 15- year government bonds.

The auction will be replaced by a syndicated transaction, in which 10-year bonds for €4 billion (35.69 billion kronor, $5.31 billion) to €5 billion will be sold to a syndicate of banks.

The announcement came as an IMF delegation began a visit to Madrid on Monday. They will assemble material for a stability report to be published in the spring.

Story continues below…

The euro fell the most against the dollar and European stock markets were generally down in Monday trading before the meeting between the finance ministers of the Eurogroup.

At the same time, interest rates climbed for the most financially pressured of the euro countries.

The interest rate on Spain's 10-year government bond rose to 5.42 percent, compared with 3.04 percent for German government securities with the same maturity.

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

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Your comments about this article

20:20 January 18, 2011 by jackx123
canceling a bond auction means the market has no confidence in the spanish economy and sends a strong signal out
00:40 January 19, 2011 by theTRUTH4u
FANTASTIC Mr. Borg ! You are doing a great job!

Please hold the position and do NEVER give in to being part of the Euro - that will be the end of Sweden and our economy.

Bailing out other countries that were stupid enough to join the Euro dollar is NOT SWEDEN'S PROBLEM!

We need to protect our currency and our own future.
12:24 January 19, 2011 by Katy87
Why should Sweden have to pay? Not your problem!
03:21 January 20, 2011 by Marc the Texan
When the time comes, and it will... Sweden is not going to say no. So when Sweden pays up, Borg will say the he had only said the probability was low.
06:59 January 20, 2011 by theTRUTH4u
He will say no until the cows come home in Texas!

Just because US is running your entire country on CREDIT, doesn't mean that Sweden should do the same. Most of us don't even have credit cards but only have DEBIT cards. Our economy is GOOD because we don't spend what we don't have!

We are not "bailing out" countries that are falling down and collapse economically because they go in debt to some other country. This is all planned and manipulated by the way.

There is no status in "having credit" or "purchasing power to ruin yourself". The US point system or Credit score is an invented way to make you think that you are in better position the more "credit power" you have. It is quite azz backwards!

The dollar is CRASHING in value and soon you will be forced to accept the Amero! Bow and thank your Obama and whoever is pulling his strings from above!
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