Analysis: Sweden braces for fallout from property slump

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Analysis: Sweden braces for fallout from property slump
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Sweden's government is ready to step in to stem the fallout from a property rout if tumbling prices cause a wider crisis - a potential harbinger of trouble across Europe

High debts, rising interest rates and a wilting economy has produced a toxic cocktail for Sweden's commercial property companies, with several cut to junk by rating agencies.

Concerns about the property sector are already weighing on the currency, while investors are wondering if Sweden is only the first domino to fall in Europe. Although Wykman did not outline how his government could act and emphasised that banks were "profitable and stable", his comments underscore growing worry in Stockholm.

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