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Sweden takes loan from ECB
SWEDEN’S central bank said yesterday it would take a €3bn (£2.6bn) loan from the European Central Bank (ECB) to ensure financial stability, despite an earlier statement from the country’s regulator that its banks could survive a severe recession.
The Riksbank is taking the loan to give it breathing space while it builds up foreign currency reserves as part of a strategy to mitigate banking risks. The move is at odds with the earlier assertion from Sweden’s regulator that the country’s major banks could manage the “extreme” pressures created by a severe recession.