People walk in a commercial street in Stockholm, Sweden, June 22, 2023. (Xinhua/He Miao)
Over 609,000 unpaid debt claims were made during the first six months of this year, an increase of 12 percent year-on-year, the authority said in a press release.
STOCKHOLM, Aug. 30 (Xinhua) -- Rampant inflation and soaring interest rates have contributed to an unprecedented increase in claims for unpaid debts, the Swedish Enforcement Authority said on Wednesday.
Over 609,000 unpaid debt claims were made during the first six months of this year, an increase of 12 percent year-on-year, the authority said in a press release.
In the first half of this year, unpaid debt claims totaled 14.6 billion Swedish kronor (1.3 billion U.S. dollars), an increase of 35 percent year-on-year, it added.
"It is clear that many have difficulties to make ends meet. We have received more claims and for significantly higher debts than in previous years," Davor Vuleta, an analyst at the enforcement authority, said in the press release.
People walk in a shopping mall in Stockholm, Sweden, June 22, 2023. (Xinhua/He Miao)
"Many claims are for bills issued by debt collection companies and banks but there are also claims for housing and electricity bills. It is a worrying development," Vuleta said.
Since May last year, many households have also faced higher costs as Sweden's central bank (Riksbank) has raised its key interest rate to 3.75 percent after seven years of zero or negative levels.
The number of claims made against individuals aged 65 and over increased the most, by 18 percent compared with the first six months of 2022, the enforcement authority said.
The inflation rate according to the consumer price index (CPI) was still as high as 9.3 percent in July, Statistics Sweden said.
As of the end of June, the accumulated amount of outstanding debts owed by individuals totaled 112 billion Swedish kronor, the authority said. (1 Swedish krona = 0.092 U.S. dollar)
People wait to cross a road in Stockholm, capital of Sweden, July 26, 2023. (Photo by Wei Xuechao/Xinhua) ■
