STOCKHOLM, Feb. 3 (Xinhua) -- The Swedish government said Tuesday that it will offer banks billions more in aid to avoid a worsening of the economic downturn.
To get the credit markets working again, the government will carry out a new rescue package worth up to 50 billion kronor (about 6 billion U.S. dollars) for the banking sector, according to a Finance Ministry statement.
If the banks decide to increase their capital by issuing new shares, the government will take up to 70 percent of any such offer, although it will prefer that the private sector be the major source of fresh funds, Finance Minister Anders Borg and Financial Markets Minister Mats Odell said in the statement.
The statement said that the new plan's purpose is to improve the banks' ability to provide credit to households and companies.
The additional money will be made available to banks through a stability fund, which was a part of the 1.5 trillion kronor (about 200 billion U.S. dollars) rescue package announced by the government last October, the statement said.
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