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Continued downturn Swedish household loan growth

Tuesday, 27 September 2011
In August, growth of loans for households from monetary financial institutions (MFIs) in Sweden continued to drop.

Statistic Sweden reports that the growth rate in August was 6.2 percent, compared to 6.4 percent in July. In August 2010 the growth rate was 8.8 percent. MFIs include banks, housing credit institutions and finance companies.
Households' borrowing from MFIs in August amounted to SEK 2 605 billion. Housing loans comprise about 80 percent, that is, SEK 2 085 billion. Housing loans are loans to households with single-family dwellings, condominiums and tenant-owned apartments that serve as collateral. The annual growth rate for housing loans was 6.1 percent in August, a decrease from 6.3 percent in July.

Of the outstanding housing loans, 53 percent were taken with a floating rate. The remaining part of household lending consists of, among other things, loans for consumption that often lack security and loans to farmers where agricultural buildings comprise the security. Households' loans for consumption amounted to SEK 161 billion and had an annual growth of 3.0 percent.

MFIs' lending to non-financial corporations amounted to SEK 1 798 billion in August, the same level as in July. The growth rate in August was 5.1 percent, which was also unchanged compared to July. In August 2010 however, the growth rate was negative at -1.1 percent.
News source: Statistic Sweden

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