RIGA — Though the bank is still having trouble with loan impairments in the Baltic States, its CEO Michael Wolf revealed to Swedish paper Dagbladet that it would start lending again.

Swedbank, among many other banks choked off credit to the region after the crisis hit. Universally, banks made losses on bad loans that were given out too freely while the countries were booming.

Wolf acknowledged that demand for new loans was low at the moment, “but we already observe signs that the situation will change,” he said.

Though 2008 and 2009 were painful years for the bank, its books are beginning to balance. Total income in the first quarter of 2010 compared with the previous quarter decreased by 10 percent, while expenditure declined by 9 percent.

The bank announced plans to roll the three Baltic banks into its main company, consolidating its position. It plans to do so by the summer.

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