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The Commission approved the Swedish rescue package to stabilise financial markets by providing guarantees to eligible financial institutions.
The package consists of a guarantee scheme covering new issuances of short and medium term non-subordinated debt, to support solvent banks and mortgage institutions that have difficulties in accessing financing. The total amount of debt to be covered is capped at SEK 1,500 billion (approximately €150 billion) and concerns instruments with a maturity of maximum three years, or exceptionally five years for covered bonds only. Debt covered by the guarantee will be accepted by the Swedish Central Bank as equivalent to government bonds.