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Swedbank, the largest bank in the Baltics, plans to raise 15 billion kronor (1.4 billion euros) from existing shareholders to bolster reserves, reports news agency LETA-Bloomberg.

Swedbank, the largest bank in the Baltics, plans to raise 15 billion kronor (1.4 billion euros) from existing shareholders to bolster reserves, reports news agency LETA-Bloomberg. The bank, which raised 12.4 billion kronors just last year, has had to rely on Swedish government guarantees in its borrowing from other banks. The company is facing soaring loan losses and provisions in Latvia, Lithuania and Estonia. The bank reported a net loss in the first and second quarters. "With this strengthening of the capital base we want to, once and for all, remove the perception that Swedbank is, or could become, a burden on Swedish taxpayers," said Chief Executive Officer Michael Wolf. "If the bank continues to be the sole participant among peers in the state-guarantee, there is a high risk of that becoming a restriction for the bank," he said. Through the rights offer, Swedbank will increase its core Tier 1 capital ratio, a measure of financial strength, to 12.1 percent from 9.8
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Title Annotation:COMPANY BRIEFS
Publication:The Baltic Times (Riga, Latvia)
Date:Aug 19, 2009
Words:166
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