Denmark’s 321% debt burden ‘no serious threat’


Danish central bank Governor Lars Rohde said most of the nation’s households would survive a jump in interest rates or a loss of income as Denmark tops world debt rankings, Bloomberg reports.

Danish households owe their creditors 321 percent of disposable incomes, according to the Organization for Economic Cooperation and Development.

“By far the major part of Danish households’ debt is carried by families who are robust enough to be able to handle shocks to interest rates or incomes,” Rohde told Bloomberg. “The threat to financial stability from that corner is therefore not serious in the current situation.”

In Sweden, central bank Governor Stefan Ingves has suggested capping household indebtedness, not adjusting for assets, at 180 percent of disposable incomes.

 

Last Updated (Tuesday, 07 January 2014 04:54)

 



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