Sweden’s amortization requirements, mortgage limits provided resilience, Riksbank chief says Reuters

STOCKHOLM (Reuters) – Amortization requirements and mortgage limits in Sweden have preserved household resilience and served the economy well, Riksbank Governor Erik Thedeen said in a statement on Tuesday.

“The high level of debt, together with the short periods for fixing interest rates, have made the Swedish economy more vulnerable,” he said ahead of a hearing of the Financial Stability Board in the parliament’s finance committee.

“However, a combination of amortization requirements, mortgage restrictions and banks’ credit ratings meant that households and the Swedish economy were better equipped to cope with a rapid rise in inflation and interest rates.”

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

Minister of Financial Markets Niklas Wykman said then that the government will decide in the first half of 2025 how to adjust the rules on mortgages.