The contrast could not be more striking. On January 8, the Bloomberg agency indicated that after having made nearly 150 billion crowns (13.2 billion euros) in profit in 2023, the four largest Swedish banks would return 89.6 billion crowns to their shareholders, an increase of 24% compared to 2023 and the equivalent of the Swedish defense budget. These figures are the result of the rise in interest rates, which increased the cost of credit for households, without being followed by an increase in savings rates.
In contrast, the report published by the National Forced Debt Recovery Agency (Kronofodgen) on Tuesday January 23 reveals a catastrophic situation for a growing number of Swedes. At 1er January, 417,248 of them, unable to pay their debts, were registered with the organization, in a country of ten million inhabitants. This is an increase of 6% compared to 2022 and the largest annual increase since the financial crisis, which devastated the Swedish economy in the early 1990s.
The amount of receivables – 119 billion, up 17% over one year – is the highest ever recorded. On average, this amounts to 78,800 crowns per person. “This trend is very worrying, because not only is debt increasing rapidly, but so is the number of people affected, with consequences which can be dramatic for their economic, social situation and their health”notes Davor Vuleta, analyst with the organization, who devoted his thesis to the impact of over-indebtedness.
“More than 4,000 tons of products distributed”
In 2023, inflation reached 8.3% on average and it is expected to rise further to 3.9% in 2024, according to figures from the Ministry of Finance in Stockholm. More and more Swedes can no longer cope: “these are people who managed to get by before on a small income, but who had no margin and can no longer get by today”, explains Mr. Vuleta. He mentions in particular those over 65, among whom the increase in debt is the highest: “This is a group that has little control over its income and is at risk of falling into long-term debt. But we already know that half of the elderly people registered in the Kronofodgen register have been in debt for twenty years or more”worries the analyst.
At the headquarters of the NGO Stadsmission in Stockholm, the secretary general, Johan Wihlstrand, shares his fears. The charity, which helps the most disadvantaged by organizing the distribution of food or clothing and welcoming the homeless during the day, has seen a dizzying increase in requests: “in 2023, more than 70% of our external activity went to food distribution, which will break all records, with more than 4,000 tons of products distributed”notes Mr. Wihlstrand, knowing that the food aid provided by Stadsmission had already increased by almost 70% in 2022.
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