Oslo facing large cuts in the coming years
Oslo City Council’s leader, Eirik Lae Solberg of the Conservative Party, has said that the city faces budget cuts of several billion kroner over the next few years.
“Oslo municipality is in a very serious financial situation. We are facing an economic turnaround that we have not seen since the 90s,” he told public broadcaster NRK.
More information on where the shortfall will be made will be unveiled when the city council announces its budget for 2025.
Hurtigruten posts large loss
Hurtigruten posted a loss of 76 million euros, or 880 million kroner, in the second quarter. The company has suffered a string of heavy losses since the pandemic.
Last year, the company lost 2.8 billion kroner. However, it has since undergone financial restructuring and refinancing.
Increase in consumer debts and collection cases
Consumer and credit card debt is on the rise in Norway. Interest-bearing credit debt has increased by over two billion kroner to 43 billion kroner over the past year, Dagens Næringsliv reports.
“We see clear signs that several people have used up their reserves and are postponing repayment of their credit card debt,” Egil Årrestad from the debt registry told the paper.
The number of debt collection cases in Norway has increased by 11 percent, while the amount of money claimed on average has increased by 26 percent.
Morten Trasti, chief analyst at Intrum, pointed to higher interest rates as the reason for the increase in collection cases.
“There will be a bigger gap in the team between those with a good wage increase and zero debt and those with lower wage growth and high debt. The last group here has had it far tougher. These are not those who earn the worst. There is no collapse in the ability to pay, but a clear indication that interest rates are now biting too many in the middle class and are leading to growth in defaults,” he said.
Royal wedding preparations continue
Princess Märtha Louise and Durek Verrett will continue their pre-wedding festivities on Friday. The guests will travel from Ålesund to Geiranger, where they will get married on Saturday on the MS Geirangerfjord II and MS Godøy.
Norway’s royal flagship is also docked just outside Ålesund, and that will also travel to Gerianger.
The pair will get married at Hotell Union in Geiranger.
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