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Danes Break Debt Trap of World’s Most Indebted Households

Denmark’s efforts to stop the world’s most indebted households from building up more debt are starting to pay off as amortization rates improve.

The Danish Mortgage Bankers’ Federation says issuance of interest-only loans -- criticized by the central bank and rating companies for posing a threat to financial stability -- has now peaked. Danske Bank A/S, Denmark’s biggest lender, also estimates the share of non-amortizing loans is set to decline.