Financial storm likely to have no serious effects on Sweden: Finance minister Borg


Friday, 19 August 2011
There are no signs of disturbances in the Swedish financial system as a result of the current financial uncertainty being observed at the moment.

What is happening now is stress in the southern European banking system, which is spilling over to Sweden, according to the Swedish Finance Minister, Anders Borg, specking to reporters on Friday.


He said that there are no primary risks against Sweden today as it was 2008 when there were big problems in our region. He also noted that the Swedish banks' financial position (capital) today is better than they were in the 2008.

He said that the government has held talks with the National Debt Office, the Riksbank and Finansinspektionen, (FSA) which all indicated that the Swedish financial system works well above the Stress levels. But he will still below the "calmer" environment.

The Finance Minister said that the great movements on the Stockholm Stock Exchange "inspires a particular concern", but that he also held talks with the stock exchange manager, Jens Henriksson, who promised to see into it that the stock market functioning in itself should not help to create additional volatility.

What changed since last Tuesday, when Anders Borg commented about recent developments in financial markets is that there has been a "huge pressure" in the southern European banks, which made an additional contribution to increased risk of a recession in the global economy.

He added however that the main scenario is a slowdown of the recovery, rather than a "free fall".
When asked if there are some bright spots, he said there don’t seem to be any glimmer of light here but that Asia will continue growing at a healthy pace
By Team

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