Downward Economy doesn’t stop Swedes taking Bank Loans

Despite higher interest rates and hard times clearly ahead, Swedes are borrowing money like never before.

According to a new study done by the Swedish Financial Supervision Board with Dagens Nyheter newspaper, banks lent over 10 billion dollars to the public this May, a 15.8 percent increase over the year before.

The statistics include mortgage loans, small private loans and business loans. Staffan Boström, Senior Analyst at the Swedish Financial Supervision Board told Swedish Radio that although Sweden is heading into a recession with higher interest rates, there are no signs of loans decreasing.

Sweden hasn’t seen quite the same downward spiral of real estate as in the US and other parts of Europe. However, Boström believes that Sweden may soon be affected too, and loans will decrease.

Swedish people have being having it good for so long that they may be having difficulty adapting to the new economic climate.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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