ECB haunted by bond buys in Swedish property crisis

FRANKFURT, Nov 30 (Reuters) – A debt crunch at Swedish property group SBB has left the European Central Bank at risk of losses and highlighted the 26 billion euro ($29 billion) exposure it built up to Europe’s now stricken real estate sector through its crisis-era bond buying.

A Reuters analysis of ECB records shows that it owns two euro-denominated bonds issued by SBB, which racked up debts of more than $9 billion buying property, including social housing, government offices, schools and hospitals.

Leave a Reply

Your email address will not be published. Required fields are marked *