It is very difficult for a country like Denmark faces an economic problem, especially when compared with its neighbors in the Eurozone. But low interest rates prevailing in Europe, especially in Denmark, could be creating a housing bubble that burst, it would in the country with the most indebted households in Europe.
In a report by the IMF on Denmark in May this year, he warned already that the rapid growth of prices clamored surveillance. Fueled by a historically low interest, housing prices have risen rapidly in recent times, especially in Copenhagen.
The debt of Danish households exceeds 135% of GDP, the highest level in Europe after Cyprus, according to Eurostat. In the Eurozone they have an average debt equivalent to 63% of GDP, well below the levels seen in Denmark.
Problems could arise liquidity to pay off debts, because the gross debt has been financed mainly with variable rate loans. If asset prices fall, this may be an explosive cocktail.
It is very difficult to predict a bubble in time, it is so important to sound the alarm at this time.
The assets of Danish families are superior to that debt, however, asset prices can fall and debt can be increased, particularly loans with variable rates, which can make it difficult to households meeting the debt if the rates go up.