Comments on: Earnings results at Swedish banks show large writedowns in Baltics http://www.creditwritedowns.com/2009/07/earnings-results-at-swedish-banks-show-large-writedowns-in-baltics.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: aitrader http://www.creditwritedowns.com/2009/07/earnings-results-at-swedish-banks-show-large-writedowns-in-baltics.html#comment-56780 aitrader Tue, 21 Jul 2009 20:00:00 +0000 http://www.creditwritedowns.com/2009/07/earnings-results-at-swedish-banks-show-large-writedowns-in-baltics.html#comment-56780 My opinion is that the Baltic writeoffs have barley begun. The Swedish government has set aside 16 billion SEK to aid the banks. They are also expecting the banks to cover a further 16 billion SEK on their own. My best guess as to the total losses in the Baltics is somewhere north of 50 billion SEK, possible as high as 100 billion. One additional note of stress for SEB and Swedbank is that the Swedish real estate market seems saturated and, apart from a recent jump due to lowered interest rates, has been sinking for about 18 months. I expect the downward trend to resume by the end of summer 2009 and add local loan default pressure on top of the Batlic defaults. My opinion is that the Baltic writeoffs have barley begun. The Swedish government has set aside 16 billion SEK to aid the banks. They are also expecting the banks to cover a further 16 billion SEK on their own.

My best guess as to the total losses in the Baltics is somewhere north of 50 billion SEK, possible as high as 100 billion.

One additional note of stress for SEB and Swedbank is that the Swedish real estate market seems saturated and, apart from a recent jump due to lowered interest rates, has been sinking for about 18 months. I expect the downward trend to resume by the end of summer 2009 and add local loan default pressure on top of the Batlic defaults.

]]> By: kynikos http://www.creditwritedowns.com/2009/07/earnings-results-at-swedish-banks-show-large-writedowns-in-baltics.html#comment-56777 kynikos Tue, 21 Jul 2009 13:59:00 +0000 http://www.creditwritedowns.com/2009/07/earnings-results-at-swedish-banks-show-large-writedowns-in-baltics.html#comment-56777 I am also assuming that Swedish banks do not have exposure to loans in real estate in places such as Spain and Ireland right? I think there are going to more writedowns in the future though. I am also assuming that Swedish banks do not have exposure to loans in real estate in places such as Spain and Ireland right? I think there are going to more writedowns in the future though.

]]>