Sweden: banks may have to join guarantee scheme
Saturday, November 15, 2008
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STOCKHOLM, Sweden — Sweden's financial markets minister is warning that the government's bank guarantee scheme could become compulsory for the Nordic country's main banks unless more of them sign up for it.
So far Swedbank AB is the only one among Sweden's four largest banks that have agreed to join the voluntary part of the program where the banks are guaranteed new issues of debt instruments in exchange for a fee.
Minister Mats Odell told Swedish Radio in an interview broadcast Saturday that he has called the banks to a meeting next week to discuss their delay in signing up for the plan that was approved by parliament more than two weeks ago.
Odell says the purpose of the plan was to get all banks on board, "but another alternative is to make it compulsory."
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