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Swedish Banks Need to Double Mortgage Risk Weights, IMF Says

Sweden should consider gradually raising risk-weights on mortgages to 35 percent from 15 percent to prevent a housing bubble and consumer debt from spiraling out of control, the International Monetary Fund said.

The Nordic country should also consider imposing minimum amortization rules, paring tax deductions for mortgages and promote policies that boost housing supply, the IMF said in a statement published on the Swedish central bank’s website today.