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ECOFIN: Swedish Fin Min: Should Support Banking System For Now



BRUSSELS -(Dow Jones)- European Union governments should maintain their support for their respective banking systems, Swedish Finance Minister Anders Borg said Monday.

Borg was speaking to reporters ahead of a meeting of finance ministers from the 16 countries that use the euro. Sweden isn't a member of the euro zone, but it does hold the rotating presidency of the European Union for the second half of this year.

"My opinion is that we should keep the financial support systems ... for an extended time period," Borg said. "When it comes to the guarantee systems, I think it's clear we have to take into account the risk that a premature exit will have spillover effects on fiscal and monetary policy."

However, Borg said that E.U. members must strive to cut their debts when it is appropriate to start to withdraw the stimulus measures put in place during the financial crisis.

"It must be a top priority in Europe to restore the public finances," he said.

-By Joe Parkinson, Dow Jones Newswires; +44 20 7842 9291; joe.parkinson@ dowjones.com


  (END) Dow Jones Newswires
  11-09-091152ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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