Sweden may have suffered more in Baltic crisis

Jan 07, 2009
TBT Staff

Despite the visible effects of the crisis in the Baltics, Sweden may have lost more in the long run.

TALLINN- Market analysts report that Sweden may have suffered more from the Baltic Economic crisis than the Baltics.

Swedish Banks, such as Swedbanka and others were more exposed to the Baltic real estate markets and perhaps may have led to the falling of the Swedish kroon in the summer of 2008, Estonian stock market analsyst Tonis Oja wrote in Estonian daily Aripaev.

 â€œIf we look back to when bubbles started to burst, then one sign was February 2007 when share prices started to fall in Tallinn. This was soon followed by a similar trend in other Central and East European bourses. Stocks in Tallinn had been posting some of the world’s fastest gains for years and, as pioneers, it was our time to lead the downfall,” saidOja.

When the highly publicized real estate bubble started to burst, it triggered a multitude of reactions stemming from bankruptcy of Bearn Sterns investment bank to fall stocks values.

 â€œBut one thing is clear - it is hard to image that a year ago anyone could have predicted the situation that we are in today,” said Oja.

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