The Swedish Prime Minister Fredrik Reinfeldt once again confirmed that the Swedish banks do have a long-term strategy in the Baltic countries.  Some Nordic Bankers have admitted that they should also share a blame for the situation in the Baltic and the Swedish „PricewaterhouseCoopers“ branch stated that it would make sense if the Nordic Banks would sell their operations on this side of the Baltic Sea.  Meanwhile the Banks reported huge losses in 2009 period.

On 27 October he said to the BBC Hard Talk Swedish government and the banks have a long-term strategy in the Baltic countries, in particular in Latvia.  When Lithuania and Latvia pulled out of communism, Swedish banks became very important for assuring investments, economic growth. The economies of those countries remained unbalanced for a long time.’

Some of the politicians and media are playing a blame game by accusing the Nordic Banks for the current situation in the country.  The Chief Economist of Swedbank Cecillia Hermansson has admitted that the Nordic banks should also take a share of responsibility for the current financial situation in the Baltic States.  On 21 October in interview to the business daily Verslo Zinios she said ‘While looking back at the resent past we must recognize that the Swedish banks are in fact responsible for the economic situation Baltic countries. However, this responsibility should be shared with all market participants and politicians. It is important to recognize that we failed to assess the risks correctly, especially to take into consideration a fixed exchange rate.’

The Swedish „PricewaterhouseCoopers“ branch in 22 October came to conclusions that it would be logical if the Nordic Banks would sell their operations in the Baltic States.  According to this report, since the Nordic countries will continue feel the pinch of financial and economic crunch for next two or three years it would make sense if they would sell their business in the suffering Easter European and Baltic markets and would concentrate on their domestic markets.

On 28 October the Bank of Lithuania announced that the combined losses of Lithuania’s commercial banks totalled of some 1.371 billion litas in the first nine months of 2009.  The Bank reported that the losses came at 743.1 million litas in the third quarter alone.

However, not all the banks ended up in red, the same report states.  Even though six banks and five foreign bank branches suffered a loss, three banks and three foreign bank branches ended the nine-month period with a profit.  The combined earnings of Lithuania’s banks made up 884.5 million litas in January-September 2008 the report stated.

On 21 October the Lithuania’s SEB bank announced that it posted an un audited net loss of 626.4 million litas for the first nine months of this year, while the losses of the whole group reached 942.8 million litas in January-September.  After this announcement the President of the Lithuanian SEB Mr Ziugzda resigned.

Another Swedish bank Swedbank group suffered a nine-month loss of 592.3 million litas as a result of provisions against potential loan losses.  Norwegian German bank DnB Nord has suffered losses of 237.2 litas during the same period

(EURO 1 – 3.45 litas)