FSA eyes further measures

The Financial Supervisory Authority (Finansinspektionen, FSA) is already eyeing the next step in tackling Swedish household debt after the new amortisation requirement will start to apply on 1 June.

At a meeting with the press on Wednesday director general Erik Thedéen described the Swedish mortgage borrowing as car driving too fast on a motorway, and said, “We must slow down otherwise the risks will increase. We don’t know what could spark a crisis or a decline.”

The FSA will not tighten existing legislation, but the financial watchdog is currently analysing a proposal of a loan ceiling for borrowers of 600% of disposable incomes.