Swedish FSA to ask govt to OK tighter mortgage repayment rules

STOCKHOLM, Nov 13 (Reuters) - Sweden’s financial watchdog called on the government on Monday to give its backing to a proposal to further tighten mortgage repayment rules as it attempts to rein in a borrowing spree that constitutes the major risk to the economy.

“After the decision in the board, the proposal will now be sent to the government for approval,” the Financial Supervisory Authority said in a statement.

The proposal will introduce tougher amortization requirements for borrowers who take on high levels of debt.

After signs of a dip in sky-high real estate prices recently, some analysts have warned tightening mortgage conditions could cause a sharper downturn in the market. (Reporting by Stockholm Newsroom; editing by Niklas Pollard)