Every Icelander Owes ISK 4.7 Million Skip to content

Every Icelander Owes ISK 4.7 Million

According to numbers from the Central Bank of Iceland, the total debt of Icelanders amounted to ISK 1,482,368 million (USD 23,669 million, EUR 16,082 million) in 2007, which means that every resident in Iceland owes ISK 4.7 million (USD 75,044, EUR 50,990) on average.

The total debt has increased by 16.74 percent between 2006 and 2007, or by ISK 1,269,759 million (USD 20,274 million, EUR 13,776). The increase in debt between 2005 and 2006 was 23.8 percent, mbl.is reports.

Hördur Gardarsson, economist at the analysis department of Glitnir Bank, pointed out that although these numbers are extremely high, Icelanders still own more than what they owe.

Gardarsson said debt has to be viewed in the right context, as a proportion of disposable income. Simply put, assets are worth four times the average disposable income, while debt is two times the average disposable income.

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