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Finance Minister Warns of Excessive Debt

Finance Minister Jyrki Katainen warns that many Finnish households are too deeply in debt. Katainen, who began work on next year's budget framework with various working groups at the ministry on Tuesday, says he is worried about the Finns' level of debt.

Henkilö katselee maksukorttejaan kassalla.
Image: Yle

The ministry is expected to lay out a general overview of his budget blueprint on Wednesday.

Katainen said he hopes that households will prepare for a rise in interest rates, which have been at record low levels.

"I've begun to be a bit worried about household debt," the deputy premier told YLE on Tuesday. "And not just a little, since at the moment it looks as if household debt is equivalent to 120 percent of its disposable income. During the 'crazy years' of the 1990s, the corresponding figure was around 85 percent. I don't want to say anything stronger than 'make sure you'll still be able to pay off your debts when interest rates rise."

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Sources: YLE