Sweden's new center-left government and its financial authorities are under huge pressure when they meet on Tuesday to tackle a mountain of household debt that is casting a long shadow over one of Europe's few economic bright spots.
Having slashed rates to zero to fight the risk of deflation, top Swedish officials are now in a quandary over how to rein in borrowing and house price rises without sending the real estate market into a downward spiral.
The country's AAA-rated economy is still one of Europe's strongest, with low public debt, sound state finances and banks among the best capitalized and most profitable in Europe.
But consumers, barely touched by the financial crisis, have loaded up on cheap mortgages and caused Swedish property prices to triple over the last 20 years, prompting a warning from the IMF that the market is 20 percent overvalued.
Adding to the problem: Sweden has built too few houses for the last 20 years and its capital Stockholm is one of Europe's fastest growing cities.
Critics say the former center-right government added fuel to the fire by slashing real estate taxes and leaving 30 percent mortgage tax relief untouched.
Meanwhile, Sweden's household debt-to-income ratio has risen to above 170 percent - among Europe's highest.