Sweden’s debt repayment requirements, debt relief provided stability, Riksbank chief says Reuters

STOCKHOLM (Reuters) – Sweden’s borrowing and lending requirements have protected household stability and served the economy well, Riksbank Governor Erik Thedeen said in a statement on Tuesday.

“The high level of debt, together with the short time to adjust interest rates, have made the Swedish economy more vulnerable,” he said before the hearing of the Financial Stability Board in the parliament’s finance committee.

“However, the combination of amortization requirements, debt obligations and bank debt levels meant that households and the Swedish economy were better equipped to deal with the rapid rise in inflation and interest rates. .”

A government-appointed commission recommended in November that Sweden ease rules on mortgage lending and repayment that have made it harder for new buyers to enter the housing market.

Financial Markets Minister Niklas Wykman said at the time that the government would make a decision in the first half of 2025 on reforming mortgage laws.