Baku-APA. Sweden's former Prime Minister Goran Persson warned on Tuesday that the country would be deeper in debt than Italy and that the debt bubble might burst in Sweden, APA reports quoting Xinhua.
"If we add the household debt to the state debt, Sweden is more in debt than Italy, which might reflect on real estate prices," Persson was quoted as saying by Swedish daily Dagens Industri (DI).
He warned in a speech in the Swedish city of Gothenburg that the Swedish people with decreasinghousing prices might end up in a vicious circle where collateral could not cover the loans.
Persson was Sweden's minister of finance in the 1990s. He helped fix the country's economy at that time when a massive Swedish real estate bubble burst.
Persson said that today's situation was more serious as the Swedish industry was going through structural transformation.
He also criticized Swedish banks, accusing them of making big profits but only distributing money to the shareholders instead of providing loans to companies.
Persson had been Sweden's finance minister from 1994 to 1996 before becoming the country's prime minister from 1996 to 2006.