UPDATE 2-Sweden faces little risk from Greek woes-c.bank

By Johan Sennero and Magnus Bellander STOCKHOLM, May 10 (Reuters) - Swedish central banker Svante Oberg said on Monday there was little risk of the Greek debt crisis spreading to Sweden and he saw no change to the country's economic situation since the last monetary policy meeting. Finance Minister Anders Borg said his country was prepared to contribute to the European Union's new rescue fund and urged fellow non-euro state Britain to do so too. "The risk of a spreading effect is very small," Oberg told Reuters on the sidelines of a seminar when asked about contagion risks from Greece. European Union leaders, central bankers and the International Monetary Fund (IMF) thrashed out a rescue package worth about $1 trillion at the weekend to stabilise financial markets and prevent the Greek debt crisis from destroying the euro currency. Sweden has said it will support the effort, but Finance Minister Anders Borg declined to specify the size of any contribution by the Nordic country. "We are prepared to move forward on a case-by-case basis and consider if there is reason for Sweden to participate in different efforts," Borg said separately. "That must in any case occur on the basis of an assessment that the countries have done everything they can and at terms that are reasonable to taxpayers. So, we have no legal obligation to participate in the work." Borg said Sweden was the only non-eurozone member to open the door to possible contributions of funds toward the package outside the auspices of the IMF, but added that he expected more countries to follow suit. "For me, it is completely unrealistic to consider that the British could, so to speak, say that they will not participate in this," he said. DEBT MOUNTAIN Borg said the rescue package had laid the foundations for a continued global economic recovery, though he added it would be "naive" to disregard the risk posed by bloated deficits in a host of countries. "The United States, Japan and England have deficits of more than 10 percent of GDP. This is an iceberg, and at the top of it stands Greece, Spain and Portugal," he told journalists. The Riksbank's Oberg, asked if Sweden's economic situation had changed since the Riksbank held its last monetary policy meeting on April 19, said: "No, it does not look any different." The Riksbank held its key interest rate at a record-low of 0.25 percent and said a first hike could come as early as summer or autumn as the economy regains a more normal footing. (Reporting by Johan Sennero and Magnus Bellander; writing by Niklas Pollard) Keywords: SWEDEN RIKSBANK/ ([e-mail]; [phone], Reuters messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.