Sweden Bets It Can Isolate Real Estate Risks to Troubled SBB
- Public officials see little chance of a repeat of 1990s crash
- Stance leaves SBB and others to deal with crisis on their own
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Sweden’s real estate crisis is raising echoes of a crash in the 1990s that sparked a full-blown financial meltdown, but government and central bank officials are betting they can keep the problems contained.
Even as slumping property prices and surging financing costs weigh on the Nordic country’s economy, authorities believe they can ride out the turmoil without widespread intervention. That leaves indebted landlords like Samhallsbyggnadsbolaget i Norden AB — commonly known as SBB — isolated as they battle to close funding gaps.