Bloomberg's News about SEK - 理財

Swedish Krona Falls to Record Versus Euro; EU Rejects Aid Plan

For the full story, see
http://0rz.tw/08qKv

Sorry that I am unable to type Chinese now. Excerpt of this new is pasted
below. Translations are welcomed.


Eastern Europe Concerns

EU leaders yesterday vetoed an appeal by Hungary for loans of 180 billion
euros ($228 billion) for ex-communist economies in eastern Europe, and
told carmakers such as General Motors Corp.’s European arm to look to
their own governments for help.

Investors dumped the krona in February after Standard and Poor’s on
Feb. 24 cut Latvia’s credit rating to junk and said eastern European
economies may face a crisis, stoking concern about Swedish banks’
holdings in the Baltic region. Sweden-based Saab Automobile filed for
bankruptcy protection last week after reporting a fourth-quarter loss
of 708 million kronor on Feb. 13.

Sweden holds 81 percent of the $40.4 billion in total cross-border
banking exposure to Estonia, 56 percent of $44.4 billion in total
cross-border banking claims in Latvia and 62 percent of the $46.3
billion exposure to Lithuania, Brown Brothers wrote, citing fourth-
quarter data from the Basel, Switzerland-based Bank for International
Settlements.

‘Negative for Sweden’

“We continue to see rising risks that the Baltic currency pegs will
be broken this year,” the analysts at Brown Brothers wrote. “That
will be very negative for Sweden.”

Riksbank Governor Stefan Ingves said Feb. 26 Swedish banks can overcome
losses in the Baltic states.

The yield on Sweden’s 5.25 percent government note due March 2011
fell two basis points to 1.04 percent, compared with 1.46 percent on
Jan. 30.



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