Bail out Plan for Recession Is Approved By Sweden

On Wednesday, October 29, 2008 Sweden’s parliament approved a 1.5 trillion Kronor, approximately $200 billion rescue package for the nation’s financial sector. From past few months, every country in the world was facing financial crisis. Every government is planning a rescues plan to help the financial sector but some are progress of approval and some approved the rescue bills.

Banks and mortgage lenders are provided with 1.5 trillion kronor credit guarantees for improving the liquidity accompanied by the global financial disorder. Government also created a new fund with 15 billion kronor ($2 billion) to bail out any Swedish banks, which run into solvency problems and fund is known as Stability fund.

In last week it was proposed with coordination of European bailout effort to clam and restore lending between banks and customers. With troubled investment bank Carnegie the credit crunch has hit the Scandinavian country and requested 5 billion kronor credit line from the central bank. More capital is raised by announcing new share issues by the Sweden’s largest banks.