STOCKHOLM/FRANKFURT, July 27 (Reuters) - Sweden has the financial muscle to intervene to stem any fire sale of property from companies rushing to sell out, the head of the country's debt agency told Reuters on Thursday.
Karolina Ekholm, Director General at the Debt Office, said the government had a light debt load and could afford to borrow more to intervene to buoy the property sector should a threat emerge to wider financial stability.
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.
The former central bank official pointed to the government's financial clout and that it could issue debt in either euros or U.S. dollars.
"It would have to be something that threatens financial stability in Sweden and so far we haven't seen any of that."
Persons:
Karolina Ekholm, Ekholm, Conor Humphries
Organizations:
Reuters, Organisation for Economic Cooperation, Development, AAA, Thomson
Locations:
STOCKHOLM, FRANKFURT, Sweden