Amsterdam

The city of Amsterdam is taking over the debts of its young adults as part of a drive to liberate people who are struggling to get into work or education.

A growth in borrowing among young Dutch adults – a trend echoed elsewhere in Europe, including the UK – is said to be standing in the way of them joining the marketplace or completing higher education courses.

Under the city’s trial project, a municipal credit bank will negotiate with creditors to buy out the debts. Those on the scheme will then be issued with a loan to repay according to their means.

The creditors will be given €750 as an incentive to pass the debt on to the municipality’s bank. The young people will have more of the debt cancelled if they successfully engage in training or an educational programme.

“Debts cause a lot of stress. And in the case of young people, debts often determine their future,” said Amsterdam’s deputy mayor, Marjolein Moorman. “The majority of these young people started out in arrears and, […]