IMF worried about high Swedish household debt
The International Monetary Fund says Swedish household debt is so high that it may be necessary to require homeowners to pay down the principals on their home loans, not just the interest, as is common today.
According to the IMF's annual analysis of the Swedish economy, in the medium-term it may be necessary to raise property taxes and lower tax breaks on home loans.
The IMF also thinks that it may be necessary to require customers to make a down payment of 25 percent on homes, compared to the 15 percent requirement today.
The International Monetary Fund says Sweden should develop targeted measures to help the groups most impacted by high unemployment to get work.
It also finds that Sweden's big cities are negatively impacted by a severe housing shortage. It says simplified building rules, a deregulated housing market, and more competition in the building sector could fix that problem.