Finance Minister Anders Borg. Photo: Lars Krabbe/Scanpix.

Spanish bailout positive for Sweden: Borg

Sweden’s Minister for Finance, Anders Borg has welcomed the decision to bail out Spain’s heavily indebted banking sector, even though Sweden did not participate.

"This decision reduces the risks for Sweden and that is positive," he told Swedish Radio.

“There’s been a big drop in property prices in Spain and it’s undermined the banks’ balance sheets. So it was necessary to create this firewall.”

The 17 member countries of the Eurozone decided to support the €100 billion bailout at a special meeting of finance ministers on Saturday.

Borg said he believed the bail out will be enough as the IMF has judged that Spain needs about €40 billion.

“In the short term this will reduce uncertainty and that is positive [for Sweden],” he added.

“But we need to be aware that we have an election in Greece next weekend and that the uncertainty remains. It was good that we got this piece of the puzzle in place but there is still a certain amount of uncertainty left.”

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