UPDATE 1-Sweden extends bank capital injection programme

* Swedish govt extends capital injection programme

* Extends programme for banks, credit firms to Feb 2010

* Says credit market problems remain, justifying extension

(Adds background, detail)

STOCKHOLM, July 9 (Reuters) - Sweden's government said on Thursday it has extended its capital injection programme for banks and credit institutions to February 2010 as the country continues to grapple with its worst financial crisis in decades.

"Even though the financial markets are improving, the impact of the financial crisis is still evident," Financial Markets Minister Mats Odell said in a statement.

Odell said the government was keen to ensure households and companies were able to secure loans at reasonable conditions and believed the previously announced measures should remain if needed.

The coalition government unveiled the up to 50 billion crown ($6.3 billion) programme earlier this year to boost bank lending to households and companies to help revive an economy that is in the grips of its worst financial crisis since the 1940s.

The scheme was due to expire on Aug. 17.

"The problems in the credit markets have not declined to such an extent that it justifies ending the current programme," the government said in the statement.

"There is a large degree of uncertainty surrounding the economic development and its consequences on banks' capital positions."

Nordic banks, mainly SEB (SEBa.ST) and its Swedish rival Swedbank (SWEDa.ST), have expanded rapidly in the Baltic region in recent years, leaving them exposed to mounting credit losses as the region's economies tread deep into recession.

So far, Nordea (NDA.ST) is the only bank which has tapped the capital scheme, taking 5.6 billion Swedish crowns under the programme.

The programme will be extended to Feb. 17 and could be extended further if necessary, the government said.