Faroe Islands report significant net wealth increase attributed to local company loans

In 2022, the Faroe Islands reported a net wealth increase, boasting five billion krónur more than the debt owed abroad. At the end of last year, the net debt stood at two billion krónur.

This financial boost is largely attributed to significant loans taken by local companies throughout the year. In total, net assets rose by 7.6 billion krónur due to the valuation of foreign securities increasing in 2023. Conversely, the value of assets held by foreigners in Faroese companies decreased, according to statistics released by the national office.

Across all sectors, there has been a rise in net assets. The public sector alone has seen a half-billion krónur increase in net wealth. Additionally, foreign debt experienced a quarter-billion krónur growth, indicating a net wealth increase of over 1.2 billion krónur for the public sector.

More than half of Faroese assets held abroad are invested in securities.