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...