Sweden’s Riksbank is more likely than not to take its benchmark rate below 3% before the end of the year, Governor Erik Thedeen reiterated, as the country’s economy is treading water and the central bank is increasingly confident that inflation will remain near its target, Bloomberg News reported. Last month, the Swedish central bank lowered its key rate to 3.5% from 3.75% and said it expects another two or three similarly-sized cuts before the end of this year. Data released since then hasn’t changed Thedeen’s view that the latter option is more probable.
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After a two-year-long bankruptcy process, Scandinavia’s flagship airline SAS AB is now under the ownership of Air France-KLM and private equity firm Castlelake LP, with former Novo Nordisk A/S executive Kare Schultz at the helm of its new board, Bloomberg News reported. The move comes amid much overdue airline consolidation in Europe in the wake of the Covid-19 pandemic, and a recent slowing in travel demand. It will also shore up Air France-KLM’s position in the Nordics, a reliable source of active travelers.
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Sweden’s major banks pose a vulnerability to the financial system due to their exposure to “highly-indebted property companies,” according to minutes from the Riksbank’s policy meeting earlier this month, Bloomberg News reported. The property risks are mainly operational, for example from elevated and still rising levels of vacancies in the office segment, as well as a high rate of bankruptcies in the near term, Olof Sandstedt, the bank’s head of financial stability, said in the statement. “This means that there is still a risk that the banks’ loan losses may increase,” Standstedt said.
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Twenty-five years after a group of friends decided to get into the whisky business during an apres-ski hot tub party, Sweden’s Mackmyra Distillery has filed for bankruptcy, WhiskyCast.com reported. The petition was filed yesterday in Gävle District Court, with a trustee to be appointed soon. In a statement on the Mackmyra web site, chairman Petter Ski said that the decision to shut down the distillery was not an easy one. “It is with great sadness that we must state that it is unfortunately not possible to continue the company’s operations," Ski said.
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Sweden’s Riksbank lowered borrowing costs for a second time since May and sketched out more easing than previously expected as inflation has fallen below its target and the largest Nordic economy is sputtering, Bloomberg News reported. The central bank, which cut its benchmark rate to 3.5% from 3.75% in a decision announced on Tuesday, said it could consider as many as three more reductions this year. Its previous guidance had implied a maximum of two cuts after today.
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Sweden’s economy has, in many ways, suffered from the same tribulations as the rest of Europe: recent bouts of crushing inflation and recession, and now the prospect of meager growth in a world split by geopolitical and economic conflict. Nevertheless, the Nordic country has a roster of high-tech entrepreneurs that is the envy of its neighbors, according to a New York Times analysis. Spotify and Skype are globally recognized brand names.
Sweden's Oscar Properties avoided bankruptcy on Monday after reaching a settlement over financial claims made by a housing association, a lawyer representing the creditor said, Reuters reported. The creditor, housing association Innovationen, owner of a residential tower in Stockholm that Oscar Properties developed, requested last month that the company be declared bankrupt over unpaid claims of around 15 million crowns ($1.4 million). "We recall the bankruptcy application after the parties reached an agreement," said Patrik Kalman, lawyer for the housing association.
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