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.
Sweden and Germany are among the worst affected by a widening property slump on the continent, according to Eurostat.
Swedish officials are worried that banks could compound property companies' troubled by cutting credit, triggering firesales that would further drag down the market.
Financial markets minister Wykman said he had held discussions with banks, property companies and investors about the entire commercial property market.
This week, analysts at JP Morgan said big banks in Sweden, which had 1 trillion Swedish crowns of property exposure, were 'ill-prepared' for losses.
Persons:
Niklas Wykman, Wykman, Ilija Batljan, Batljan, JP Morgan, Finland's, SEBa.ST, Chiara Elisei, Sinead Cruise, John O'Donnell, Toby Chopra
Organizations:
Organisation for Economic Cooperation, Development, Financial, Reuters, Eurostat, OECD, Reuters Graphics, SBB, JP, Thomson
Locations:
STOCKHOLM, FRANKFURT, Europe, Sweden, Germany, Stockholm, Swedish, Spain, Ireland, London