Swedish banks set to lose billions in Baltics - Ingves

Feb 03, 2010
Oskars Magone

Swedbank is one of the largest banks in the region and has suffered major losses as a result of the crisis. (Photo: Swedbank)

STOCKHOLM - Swedish banks may be looking a billions of dollars in losses in the Baltic States this year, Swedish central bank governor Stefan Ingves said.

He said the three main lenders operating in the region - Swedbank, Nordea, and SEB - could be looking at losses as high as 2.7 billion in 2010, the Swedish Central Bank head said in a speech published on their website.

"According to the Riksbank’s own estimates, the three banks’ total loan losses in the Baltic region will be SEK 27 billion for the whole year 2009, and roughly the same in 2010," Ingves said.

"The Riksbank had detected at a relatively early stage that the Swedish banks’ lending in the Baltic region was not sustainable and that it would lead to significant risks," he said.

The statements were released the same day a major Swedish newspaper, Dagens Industri, reported that the Baltics were on the way to recovery.

The comments also came at a time when the economic commission of the Swedish Parliament is conducting an enquiry about the economic crisis in the Baltics and the activities of Swedish authorities.

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