The banking initiative Hållbar Byggransch rolls out on November 27. This means that the banks will change their conditions for granting credit when financing construction. The goal is to clean up the industry and prevent financial irregularities that have become common in Sweden in the last few years.
Hållbar Byggbransch is a collaboration between the major Scandinavian banks and industry organizations in the construction and property sector. The main players are Danske Bank, Nordea, SBAB, SEB and Swedbank, and Handelsbanken simultaneously imposes special conditions according to the cooperation’s guidelines. The initiative will govern how new credit is offered to address problems caused by rogue employers and fraud.
Anders Lindell, CEO at Myloc, welcomes increased control over construction projects for better safety and control throughout the actor chain and adds “Everyone benefits from increased traceability and fair working conditions.”
Clients must now have better control over their contractors and must be able to report valid F tax forms and the absence of unpaid tax debts. Therefore, physical presence on construction sites must also be documented using electronic personnel logs. Both lenders and companies that want to do right for themselves will in the future be able to fall back on Hållbar Byggbransch’ rules. Because creditors want to make sure that funds earmarked for new construction and renovation ends up in the right pockets. The idea is that healthy competition contributes to sustainable growth.