KARLSTAD, Sweden, March 15 Financial Markets
Minister Peter Norman on Friday played down worries about high
levels of household debt, one of the reasons the central bank
has kept its key rate on hold at 1 percent rather than cutting
"It (debt levels) isn't alarming. It is high. Sweden and
households themselves would be in better shape if it was a bit
lower," Norman told Reuters.
He said he did not believe Sweden should have a strict rule
that mortgage borrowers make monthly repayments to bring down
the size of their loans rather than just paying the interest.
He said amortization of loans was a good thing, but there
were periods in life, such as unemployment, when paying off
loans was not possible.
(Reporting by Simon Johnson and Johan Sennero, editing by