The commercial property crisis in Sweden has prompted the country’s financial watchdog to hold a cross-party meeting to better understand the risks to financial stability.
(Bloomberg) — The commercial property crisis in Sweden has prompted the country’s financial watchdog to hold a cross-party meeting to better understand the risks to financial stability.
Sweden’s Financial Supervisory Authority “is today conducting a roundtable discussion with relevant industry players and authorities about how real estate valuations take place at listed real estate companies,” it said in a statement on Friday.
The meeting comes at an acute time for the country’s commercial property firms, which need to refinance about $17 billion of bonds by the end of next year. To lighten their debt loads they have earmarked asset sales but the transaction market has slowed considerably as sellers and buyers struggle to agree on prices. The dearth of new deals is adding to the challenges for many firms as they seek to shore up their balance sheets.
Those invited to the roundtable discussion include representatives from the commercial sector and authorities with expertise in accounting, valuation and financing, as well as in regulation and financial stability, according to the watchdog.
“Now that there are few transactions in the market, we need to better understand how valuations take place and how methods for calculating values and transparency can be improved,” said FSA Deputy Director General Susanna Grufman.
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