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CreateTime:2008-11-05 Editor:liaoyan
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SWEDBANK yesterday became the first of the Nordic country's four main banks to announce plans to ask for guarantees under the government's bank bailout package on new debt it is issuing.
In a brief statement the bank said it would send its application "shortly."
Last week, Swedish politicians approved government plans to set up a 1.5-trillion-kronor (US$195-billion) rescue package for the country's financial sector.
The government guarantees institutions' new issues of debt instruments in exchange for a fee.
Two days before the package was approved, Swedbank 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.
The move underscored that the global credit crunch has hit the Scandinavian country, which had long said its banks were healthy and relatively well-positioned to cope with the financial crisis.
Swedbank shares fell some 13 percent that day.
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