Sweden will tighten borrowing rules in 2013

Sweden will tighten borrowing rules in 2013

Swedish authorities intend to tighten lending rules in 2013, as the debt of homeowners in 2012 increased by 170%. The Bank ofSwedenextremely alarmed on this occasion.

Central bank Governor Stefan Ingves said that pressure on banks and lenders will increase in next year to rid them of credit imbalances associated with the real estate sector. According to Swedbank AB (SWEDA) CEO Michael Wolf, the Swedish real estate market will become more limited, since the loans will be inaccessible due to higher debt levels.

SwedbankABis the largest mortgage lender country. Bank has problems, as Danske Bank A/S (DANSKE), which had to lay off about 3,000 employees because of non-payment inIrelandandDenmark.