Stockholm - Swedbank, one of four major Swedish banking groups, Tuesday confirmed it planned to sign on to a stability plan approved last week.

The application to join the guarantee programme was to be filed shortly, the group said.

The guarantee fund is worth 1.5 trillion kronor (201 billion dollars) and banks would have to comply with restrictions concerning bonus payments and other benefits to top executives.

The scheme is initially scheduled to run until April 2009.

Swedbank has recently been in the sights of analysts due to its presence in the Baltic region, where economic growth has slowed to a standstill and fears of loan losses have increased.

Last month, Swedbank said it planned to raise 12.4 billion kronor by issuing new shares.

Formal approval of the move was due at a special general meeting, scheduled for November 25. (dpa)