Swedish government ends support for banking sector

The national programme of support for banks will not be extended beyond the existing deadline of 30 June 2011, Sweden’s government has announced.

The decision means that there will no longer be guarantees backed by the state offered to banks, whether solvent or not. The government has been phasing out the programme since 2010, as part of efforts to dismantle the extraordinary support mechanisms put in place at the time of the financial crisis in 2008-9.

“This support played a crucial role when the Swedish financial system was saved during the financial crisis less than three years ago,” said Peter Norman, minister for Financial Markets.

“Even if concerns remain around the financial situation of certain euro countries the situation for banks in Sweden today is so stable that it is reasonable the support programme is terminated.”

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