“I think we have a slightly more positive view of where we’re heading, but we are very alert,” Erik Thedeen said in an interview at his office in central Stockholm on Thursday. “I’m a little bit less concerned of the tail scenario, a really bad scenario, but I’m still concerned that we have a highly indebted commercial real estate market. That is still an overall risk for the Swedish economy.”
“There’s a big difference between the really weak companies — you know which they are by just looking in Swedish newspapers — the stronger names, and those that are in between.” The Riksbank on Thursday joined Swedbank AB and Nordea Bank Abp in forecasting two years of contraction for the biggest Nordic economy. Consumers have pared back spending, Sweden’s export markets are softening and builders are holding back on starting new projects.
“The longer they wait, the more fragile it gets,” Thedeen said. “If an accident happens down the road, if risk premiums goes up, or something happens with inflation or their underlying business... Of course, the longer they wait, the more the risk increases that they actually end up in problems.”
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