Norway government rejects proposal to tighten mortgage lending

OSLO, Dec 9 (Reuters) - The Norwegian government on Friday rejected a proposal by the country's bank regulator to tighten mortgage lending, keeping key provisions of the current system in place.

The Financial Supervisory Authority in October recommended that households should only be allowed to borrow up to 4.5 times their gross annual income, instead of 5 times previously, as a way to help prevent future financial instability.

Reporting by Terje Solsvik, editing by Stine Jacobsen

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