Finland borrowed less than expected in 2013. The Treasury announced on Friday that borrowing totalled 17.45 billion euros, which was below the estimate in last year’s state budget.
The largest block of these funds – 6.4 billion euros – was spent on paying off old debts.
Next year borrowing is projected to edge up to 17.8 billion euros. Some 70 percent of that will be used to cover long-term loans. The state debt is expected to grow to by 7.1 billion euros.
Debt rising in 2014
In its quarterly review issued on Friday, the State Treasury predicted that central government debt will rise to 49.3 percent of GDP by the end of next year. Overall public-sector debt, though, will climb to 60 percent, though, it warns.
According to the Treasury report, the Finnish economy will return to growth in 2014 after two consecutive years of decline in GDP. But it foresees modest growth of just 0.8 percent, powered by exports.
Finland is one of few European countries to retain a triple-A credit rating from all three major rating agencies, but the government has warned that indebtedness will rise.