The Governor Stefan Ingves mean that Swedes attitude to loans fueling the housing market and put us in debt. Deputy Governor is correct in and call it the Swedish situation is exceptional.
It is important that Sweden will return to a better repayment culture, which would facilitate the increases in house prices and reduce the risks of household debt.
It said Governor Stefan Ingves in a hearing in the Finance Committee on Tuesday.
With small changes in interest rates will not be any major impact on debt or other parts of the economy. It is more about “the margin” affect household debt. But this question live in a different time horizon, beyond the forecast period, and it is difficult to find a proper balance.
amortization requirements is a reasonable measure in the sense that we should bring the behavior in Sweden that we amortise. If we look at countries such as Canada, Finland, and Israel is the amortization period about 30 years.
It need not necessarily be the case in Sweden, but we should find something reasonable based on Swedish conditions. If we find that we get a better balance in the housing market and housing price increase is not focused in the same way as before. But it is about long-term issues.
Deputy Governor Martin Flodén also noted that small changes in interest rates do not affect the debt so much, but communication on this has made it much discussed in Sweden and it can lead to actions in other policy , which is good.
This is an exceptional situation in Sweden where few amortise and which many have variable interest rates. It is desirable that the amortization is normally, if need be by legislation or voluntary is a question that they need to come back to, including in the Fiscal Council, he said. Although the issue of mortgages maturities is important to come back to.
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