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Swedish markets drop as crisis fears mount

The Stockholm stock exchange suffered a sharp slide on Monday, dragged down by steep share price drops for Swedbank and the Carnegie investment bank, while the Riskbank took further measures to shore up liquidity, adding to fears that the effects of the global financial crisis may be hitting Sweden.

Published: 29 September 2008 16:47 CEST
Swedish markets drop as crisis fears mount

By 4pm, Stockholm’s OMXS-index was down 5 percent on the day, with Swedbank shares down more than 15 percent to 85.25 kronor ($12.56).

The bank’s stock, which was Sweden’s third most-widely held as of July with 316,000 shareholders, has shed more than half its market value since the start of the year.

Carnegie’s stock price had also plummeted, down around 18 percent. Shares in SEB were down 11 percent, while the stock price for Nordea and Handelsbanken were down 4 percent and 6 percent, respectively.

Meanwhile, the Riksbank announced it was tripling the size of its previous reciprocal currency arrangement with the Federal Reserve Bank in the United States from $10 billion to $30 billion kronor.

“It is the responsibility of the central banks to cooperate and together safeguard financial stability,” the Riksbank said in a statement announcing the expanded swap facility.

The move will allow the Riksbank to lend more dollars to struggling Swedish banks in the hopes of avoiding further stress on already tight credit markets.

Despite the move, the Riksbank stressed that there was no need for panic.

“The Riksbank’s assessment is still that financial stability in Sweden is satisfactory. The Swedish banks are well-equipped to withstand the increased unease that is now also apparent here. We are carefully following developments and have a close cooperation with the Swedish banks and government agencies as well as with other central banks,” said the Riksbank.

“The market is very quick to shift its focus and today the focus has shifted from the American market over to Europe,” said Swedbank’s Ronny Jacobsson to the TT news agency.

“The latest development in European trading raises questions about the preparations for dealing with the financial crisis over here.”

Jacobsson added that the US bailout package, currently in the final stages of approval, is an important piece of the puzzle, but that a US solution doesn’t mean the crisis is over.

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

Published: 12 March 2024 13:40 CET
How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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