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    Sweden’s Finance Minister Warns - "Debt-Storm" Rolling In

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    NTDTelevision

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    Sweden's Minister of Finance is warning that shock waves from a global "debt-storm" are reaching Sweden. The country has enjoyed robust growth recently, but experts warn of tough times ahead for the export dependent economy. Our correspondent in Stockholm, Sweden has more.

    While Sweden's economy may have been sailing along fairly smoothly since the darkest days of the financial crisis of 2008-2009, the Swedish Finance Minister says the country is in for some stormy weather.

    [Anders Borg, Minister of Finance]:
    ”There's a problematic situation in the world economy. What we are seeing is wave after wave from the debt-storm rolling in on the Swedish economy.”

    The Swedish central bank announced last week that Sweden's economy is showing signs of weakening.

    It has revised 2012 growth forecasts from 2.2% down to 1.7%.

    Experts add that the growing likelihood of recession in Europe could spell trouble for Sweden's export dependent economy.

    [Professor Mats Persson, Stockholm University, Economics]:
    ”We are a very export dependent country so if there is a big recession in the rest of Europe then it will harm our export industries but so far we haven’t seen much of it but everybody expects it to come.”

    Persson adds that even a single major bank default in Europe could have a knock-on effect and spell trouble.

    [Professor Mats Persson, Stockholm University, Economics]:
    ”If a bank defaults, that could create large problems in the international payment system, we saw that in the United States, one small bank, the Lehman brothers was bankrupted in the fall of 2008, and that really shook the international banking system.”

    Just last week Sweden's Finance Minister called into question the stability of French and German banks and called for more pressure on Italy and Greece to get their fiscal houses in order...