IMF concerned by Swedish household borrowing

The International Monetary Fund says Swedish households borrow too much, and that could be risky for the Swedish economy and lead to instability.

In a new report published this week, the IMF says the Swedish economy is gaining speed after a recent slow-down, but the level of mortgage borrowing is worrying.

"Household debt has reached 190 percent of disposable income on some measures, more than two thirds of new mortgages have variable rates, and a significant share of household net-assets is illiquid," the IMF writes in its report, recommending getting rid of tax deductions on mortgage payments, statutory amortisation rates and reforms to the rent-setting process.

The IMF also says more needs to be done to help the unemployed, especially in what it calls "vulnerable groups", the young, low-skilled and foreign-born.