STOCKHOLM Feb 23 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
"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)