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The Commission approved the Swedish aid scheme intended to bolster the financing of the real economy by providing capital to banks.
The Swedish recapitalisation scheme allows the Government to provide share capital or hybrid capital to be counted as bank Tier 1 capital. The state will only provide capital if a substantial contribution is provided by private investors (at least 30% of the total investment). The state will then participate in the recapitalisation on the same terms as the private investors.