Experts: amortization requirements might be a years – Swedish Dagbladet

The introduction of an amortization requirement might take a year, experts say. Photo: Tomas Oneborg.

The Governor Stefan Ingves has faced the first meeting of the Stability Council, on Monday, calling for alternative measures against the debt problem at the side of the amortization requirement. He has argued for lower interest deduction, a ceiling for borrower’s debt ratio, regulating maturities of mortgage loans and stricter requirements on banks’ credit assessments.

But the financial institution (FI) acting Director General Martin Noréus, with the main responsibility for dealing with the problem, acting brake. He sees right now no accurate alternative.

Like the Minister for Financial per bolund (MP) warns Noréus that there may be new problems of introducing too many untested measures simultaneously.

The amortization requirement for new mortgages, FI wanted to introduce in August, was stopped in April since Appeal indicated that it was uncertain whether the FI’s mandate gave the authority to impose the requirement.

Bolund since then, in cooperation with the opposition in parliament , worked on developing a proposal for legislative change with a clearer FI mandate. He would not give an exact date for when it might be presented, but stands when TT addresses the issue by its promise that it will be informed of the matter “before the summer”.

It must be given the time it takes

Minister for Financial per bolund (MP). Photo: Henrik Montgomery / TT.

– It must take the time it takes, but the discussions so far has been very fruitful and constructive, he said.

– We hope to clarify it in the near future, he added.

Analysts TT talked to expect that a bill with a new FI mandate may be clear to the parliamentary decision about something six months. Thereafter, the FI develop the repayment requirement, which in turn should be circulated for comments before it can enter into force.

– There might be implemented at the latest sometime around the middle of next year, says Claes Måhlén, chief strategist of interest rates and currencies at Handelsbanken.

There will – when it now becomes – is expected to be close to the proposal from the FI had just pulled back, think both Måhlén and SBAB’s chief economist Tor Borg.

– There may be difference in technicalities, but the mortgage will be amortized down to 50 per cent of the market value, I think will be left behind, says Borg.

Bolund see no way around to take the proposal to the Parliament, but are not particularly concerned that the repayment requirement thus delayed.

– If we come with a clear statement about what is the focus, I think it will be able to effect already in the implementation phase, when we keep on working with it.