The Swedish Financial Supervisory Authority (FSA) today cancelled its plans to impose an "amortisation requirement" on mortgages later this year – despite insisting it is still necessary to address the country's debt issues.

Citing concerns from the Administrative Court of Appeal of Jönköping over the legal basis for such a requirement, the FSA said its mandate "needs clarifying" before it can implement the policy.

For the past year Swedish policy-makers have argued in favour of a measure that