STOCKHOLM, Feb 23 (Reuters) - Swedish banks will have to issue 500 billion Swedish crowns ($56 bln) in subordinated bonds over the next five years in order to meet the minimum requirement in new resolution rules, the Debt Office said on Thursday.
“Banks that are important for stability in the financial system now need to replace a portion of their existing bond holdings with subordinated bonds,” it said in a statement.
“This is deemed to be possible without banks needing to increase their level of debt.”
The Debt Office is responsible for resolution, the management of failing banks and credit institutions in Sweden. Swedish banks came through the financial crisis relatively unscathed and are among the most well capitalized in Europe. ($1 = 8.9728 Swedish crowns) (Reporting by Johan Ahlander; Editing by Simon Johnson)