Stockholm - The Swedish central bank Friday said it has signed a deal to help neighbouring Estonia with a bridging loan worth 10 billion kronor (1.1 billion dollars).

The move was described as a "precautionary arrangement" to help the central bank of Estonia, Eesti Pank, gain access to credits.

"It is important that central banks cooperate and assist each other in times of financial stress," Swedish Riksbank governor Stefan Invges said in a statement, adding that "the financial systems in Estonia and Sweden are closely linked."

In December, the Swedish central bank made a similar arrangement with Estonia's Baltic neighbour Latvia. (dpa)