Sweden’s government has launched an inquiry into reforming the requirement that mortgage holders in Sweden must pay off between one to three percent of their loans each year, despite a U-turn on an election pledge to pause the requirement.
Sweden’s Minister for Financial Markets, Niklas Wikman, said when launching the inquiry on Thursday, that while in the short-term he agreed with the Riksbank that scrapping the requirement would be inflationary, the government wanted to assess whether more flexibility could be brought into the system.
”The risks posed by the high level of household debt needs to be managed and the regulations used for that should be both effective and proportionate,” Niklas Wykman, Sweden’s financial markets minister, said in a press release.
”How that can be best done is an important and difficult question and a thorough inquiry can help to increase our understanding of it. The idea is to develop macrosupervision, not abolish it.”