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Swedish banks lent extensively to the private sector in the Baltic states in recent years (Photo: European Commission)

ECB to lend €3bn to Swedish central bank

The European Central Bank announced plans to lend €3 billion to Sweden's central bank on Wednesday (10 June) as the country comes to terms with its heavy exposure to the crisis-hit Baltic region and in particular Latvia.

The loan – part of a swap agreement whereby the Riksbank can borrow up to €10 billion from the ECB in exchange for Swedish kronor - will help the Swedish central bank in turn to provide greater support to the country's private banks that currently face extensive loan l...

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Swedish banks lent extensively to the private sector in the Baltic states in recent years (Photo: European Commission)

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