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Swedish household borrowing continues to rise - but at a slower pace
Tuesday, 29 May 2012
Sweden is already a country with very high household debts but
borrowing to household continues to grow despite various efforts to
bring it down to a manageable level.
Official data today from statistic Sweden show that, loans by Monetary
financial institutions (MFIs) to households had an annual growth rate
of 4.8 percent in April. This was a decrease compared to March, when
the growth rate was 5.0 percent. In April 2011, the growth rate was 7.2
percent and had a downward trend for the whole of last year.
MFI loans to households in April amounted to Skr2 681 billion. This is
an increase of Skr 123 billion compared to the corresponding month last
year. Most of the increase can be explained by a rise in housing loans
of Skr 102 billion during the same period. Housing loans are loans to
households with single-family dwellings, condominiums and tenant-owned
apartments as collateral.
In April, the outstanding housing loans of households at MFIs amounted
to Skr 2 151 billion. Of these loans, 52 percent had floating interest
rates, which is about the same as in March. In April 2011 the share of
housing loans with a floating rate was 55 percent. The remaining part
of household borrowing consists of, among other things, loans for
consumption that often lack collateral and loans to farmers where
agricultural buildings comprise the collateral. Household loans for
consumption amounted to Skr 165 billion and loans with agricultural
buildings as collateral amounted to Skr 167 billion.
Lending by MFIs to non-financial corporations amounted to Skr 1 842
billion and grew at an annual rate of 5.3 percent. This was an increase
compared to March, when the growth rate was 4.4 percent. In April of
2011, the growth rate was 3.3 percent. Loans with multi-dwelling
buildings as collateral accounted for the majority of loans to
non-financial corporations. In April, these loans amounted to Skr 549
billion. Unsecured loans, or loans without collateral, amounted to Skr
News source: Statistic Sweden
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