COPENHAGEN (Reuters) – The outlook for Sweden’s financial stability has improved somewhat, and uncertainty has decreased even though the country is still in the middle of a recession, financial watchdog FI said in a twice-yearly report on Monday.
“We are headed in the right direction, and uncertainty has decreased, but the situation is still tough for many households and firms. It is too early to breathe a sigh of relief, even if there are positive signs,” FI Director General Daniel Barr said.
High debts, interest rates and a wilting economy have hit many European property companies, with the sector in Sweden among the worst affected.
“Even though the situation in the commercial real estate sector is better today than it was six months ago, many commercial real estate firms have too much debt,” the FI said in its report.
“It is therefore important for highly leveraged firms not to be passive but to continue to reduce their debt,” it added.
(Reporting by Stine Jacobsen, editing by Terje Solsvik)
