Sweden—Cross border banking and finance guide
Produced in partnership with Hannes Snellman Attorneys
Sweden—Cross border banking and finance guide

The following Banking & Finance practice note produced in partnership with Hannes Snellman Attorneys provides comprehensive and up to date legal information covering:

  • Sweden—Cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Sweden—Cross border banking and finance guide

The responses provided in this article are general. Kindly note that specific situations and circumstances might lead to different answers.

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments

The Swedish loan market, which managed to overcome the financial crisis commencing in 2007 better than many other European countries, has grown since the credit crisis.

After a few years of low corporate lending after the crisis, corporate lending increased by approximately 7% between 2013 and 2015 and the large Swedish banks again became more willing to lend to corporates.

In 2015, the Swedish Central Bank took the drastic step of introducing a negative repo rate. Between the years 2015 and 2020, the repo rate was at all times between –0.1% and –0.5%. In December 2019, the Swedish Central Bank announced that the repo rate should be increased to 0% with effect from 8 January 2020. In connection therewith, the Swedish Central Bank also announced that they intend to leave the repo rate unchanged for the coming years.

Despite the negative interest rate, the large Swedish banks have succeeded in holding up their margins. Between the years 2014 and 2018, the large Swedish banks’ total lending continued to increase, with an average of approximately 6% per year and corporate

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