The debt adds up to 11,000 euros per Finnish citizen. However this year, interest rates are lower than last year.
Several factors including slow economic growth, diminishing tax revenue and, in part, a reflationary fiscal policy, have forced Finland to borrow more. The State Treasury is preparing for the sizeable increase in loan money.
”Now that there are more needs to be met over the next five years, we are trying to broaden the investor base and ensure that we can get funding in the coming years,” says Teppo Koivisto of the State Treasury.
For the time being, Finland has not had problems securing a loan. However, that could change as many other countries also need extra cash right now.