Bank Guarantees Extended
The Swedish government has extended a guarantee plan for new borrowing by the country’s banks by six months.
The scheme was originally launched last October in an attempt to ease borrowing for banks and businesses and households. It was due to expire on April 30th, but with Sweden now facing its worst recession since the 1940’s, Financial Markets Minister Mats Odell said on Thursday that it will be extended a further six months.
The 180 billion dollar program also includes guarantees for more longer-term borrowing that before.
So far only one bank has taken advantage of the guarantees. The other large Swedish banks have criticised the conditions attached to the loans, including heavy fees, and restrictions on management bonuses and golden handshakes.