Debt not a big issue in the Faroes

Faroese households and businesses have relatively low debts compared with debt levels in other parts of the Western World.

According to the budget report 2019, a typical Faroese household has a debt that is 55 percent of the GNP. In Denmark and Norway, the average household debt is well above 100 percent of the GNP, while in Iceland it is 75-80 percent.

The Ministry of Finance says these figures reveal a sustainable financial system, based on increased production and income growth, rather than on loans.

Translated by prosa.fo