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Norwegians drown in debt

Norwegians have almost the same amount of debt now as before the bank crisis at the end of the 1980s. Experts are worried.

08.07.04 10:38

The Banking, Insurance and Security Commission of Norway is worried of the development in the country as private household’s collected debt has increase with more than 11.3 percent from May of last year to May of this year. Norwegians debt increased with NOK 117 billion (USD 17.2 billion).

«People’s debt is increasing much faster than the income, and this can not continue over time,» said Erik Lind Iversen, senior advisor at the Commission, to the Norwegian television channel NRK. «The Banking, Insurance and Security Commission of Norway urges both borrowers and banks to be more sober.»

The Consumer Ombudsman and the Market Council starts a campaign against the banks marketing of housing loans Thursday. A decision from the Market Council stated that the banks are required to present the effective interest rate when they advertise. Some banks inform only about the nominal interest rate, not the effective rate, in their ads.

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