“Everyone should finally understand that the increasing indebtedness of the Finnish state must be stopped, or else the next crisis we face will be a sovereign debt crisis,” he stressed.
The government’s debt burden has grown rapidly in recent years, from around 106 billion euros at the end of 2019 to 135.7 billion euros at the end of August 2022. highlighted Helsingin sanomat newspaper. More than 123.5 billion euros of the debt are institutional investors.
The Finnish government is facing an increase in its interest expenses.
Information from the State Treasury reveal that the annual interest expenses of the budget debt have risen from 788 million euros in 2021 to 800 million euros at the beginning of October. Despite the rising trend, expenses will remain low in the longer term: the government has not spent less on interest expenses since 1990, when expenses were 794 million euros. The expenses peaked at more than 5.6 billion euros in 1998 and remained at more than two billion euros until 2008.
the Treasury minister Annika Saarikko (The Center) stated last month in announcing the government’s budget proposal for next year that interest expenses are expected to increase by 200 million euros in 2023.
Aleksi Teivainen โ HT
Source: The Nordic Page