Sweden's economy "not affected" by Cypriot deal

The head economist at one of Sweden's biggest banks tells Radio Sweden that the EU loan to Cyprus is good news, but that there will be little direct impact on Sweden.

Last night, a 10-billion euro loan from the European Central Bank and International Monetary Fund was negotiated for Cyprus, in a scheme that includes the effective break-up of Cyprus's second-largest bank, and one-off taxes for those with large sums on deposit.

"There are individuals with accounts in Cypriot banks, who may face a one-off tax, and others who do business with Cyprus, who may have problems, but as a whole, the Swedish economy will not be affected by Cyprus's problems," says Cecilia Skingsley at Swedbank.

Meanwhile, the head economist at Nordea bank tells Swedish Radio that the crisis in Cyprus's banking sector will have an impact on the small savers of Europe, since the earlier proposal to tax all of Cyprus's bank accounts, including those under 100,000 euros, will probably cause fear to spread, and make some withdraw money from their bank accounts.

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