<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Nov 16, 2008
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Swedbank adopted the plan last week after its shares had been pressured for some time due to concerns about its exposure to the volatile Baltic countries. -- PHOTO: REUTERS
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STOCKHOLM - SWEDEN'S financial markets minister on Saturday warned that the country's main banks could be forced to join the government's debt guarantee programme unless more start signing up for it voluntarily.
More than two weeks after lawmakers approved Sweden's 1.5 trillion kronor (S$289 billion) financial institution rescue package, Swedbank AB is the only one of the country's four largest banks to have agreed to the voluntary part of the program, where the government guarantees their future debt instruments in exchange for a fee.
Replies are still awaited from Skandinaviska Enskilda Banken AB, Nordea AB and Handelsbanken AB.
In an interview with broadcaster Swedish Radio, Financial Markets Minister Mats Odell said he was intrigued by the poor participation so far and said he had called the banks to a meeting next week to discuss the reasons for their delay in signing up.
'We have to look at what it is that prevents the glove from fitting properly,' he said, but added he would not easily accept reasons such as restrictions on bonuses or other incentives, and that he would not be prepared to discuss changes in such areas.
'The purpose was to get all the banks (on board). Another alternative would be to make it compulsory,' Mr Odell said of the programme.
It was unclear how the government could force banks to sign up to the plan, but some observers have said all the big players need to take part in order to ensure stability of the the country's financial sector.
Swedbank adopted the plan last week after its shares had been pressured for some time due to concerns about its exposure to the volatile Baltic countries and the bankrupt US investment bank Lehman Brothers. Two days before joining, it had unveiled plans to raise 12.4 billion kronor in a new share issue, in a 'prudent' move to strengthen its capital position, given the uncertainty in the broader economy. -- AP
</TR><!-- headline one : start --><TR>Swede banks need guarantee <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Swedbank adopted the plan last week after its shares had been pressured for some time due to concerns about its exposure to the volatile Baltic countries. -- PHOTO: REUTERS
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
STOCKHOLM - SWEDEN'S financial markets minister on Saturday warned that the country's main banks could be forced to join the government's debt guarantee programme unless more start signing up for it voluntarily.
More than two weeks after lawmakers approved Sweden's 1.5 trillion kronor (S$289 billion) financial institution rescue package, Swedbank AB is the only one of the country's four largest banks to have agreed to the voluntary part of the program, where the government guarantees their future debt instruments in exchange for a fee.
Replies are still awaited from Skandinaviska Enskilda Banken AB, Nordea AB and Handelsbanken AB.
In an interview with broadcaster Swedish Radio, Financial Markets Minister Mats Odell said he was intrigued by the poor participation so far and said he had called the banks to a meeting next week to discuss the reasons for their delay in signing up.
'We have to look at what it is that prevents the glove from fitting properly,' he said, but added he would not easily accept reasons such as restrictions on bonuses or other incentives, and that he would not be prepared to discuss changes in such areas.
'The purpose was to get all the banks (on board). Another alternative would be to make it compulsory,' Mr Odell said of the programme.
It was unclear how the government could force banks to sign up to the plan, but some observers have said all the big players need to take part in order to ensure stability of the the country's financial sector.
Swedbank adopted the plan last week after its shares had been pressured for some time due to concerns about its exposure to the volatile Baltic countries and the bankrupt US investment bank Lehman Brothers. Two days before joining, it had unveiled plans to raise 12.4 billion kronor in a new share issue, in a 'prudent' move to strengthen its capital position, given the uncertainty in the broader economy. -- AP
