Denmark : Selected Issues

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

December 9, 2014

Electronic Access:

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Summary:

This Selected Issues paper examines the household debt situation in Denmark and factors that have contributed to the high level of household debt in the country. Various factors seem to account for the size of household debt, including large pension assets, a highly developed mortgage market, the availability of flexible mortgage products such as deferred amortization loans, indirect subsidies through tax preferences for home ownership, and a regulated rental market that limits mobility. The paper highlights that high household debt could pose direct risks to financial stability if the number of mortgage loan defaults rises sharply in the face of adverse shocks.

Series:

Country Report No. 14/332

Subject:

English

Publication Date:

December 9, 2014

ISBN/ISSN:

9781484374313/1934-7685

Stock No:

1DNKEA2014002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

52

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