Debt burden on the population in Russia has reached a historical maximum as commented by Sava Lukić, partner of FinExpertiza Serbia, for Nezavisimaya Gazeta

The ratio of debt of Russian households to cash income has reached a historical maximum of almost 30% according to expert estimates based on statistics. In other countries, the debt burden on the population, as a rule, is several times higher, and the countries closest to Russia under this indicator are perhaps Hungary, Latvia, and Lithuania.

The situation on the European credit market has been commented by Sava Lukic, Partner of FinExpertiza Serbia.

In Serbia, the population is “over-credited”, and the debt burden on households is high. This is not only our misfortune. We observe a similar situation in our neighbors in all so-called transition economies of Eastern Europe: Montenegro, Croatia, Romania. I believe, the root of this evil is the low level of financial literacy of the population, and banks derive maximum benefit from it.

In Western European countries, people are also readily credited. However, income of citizens is higher, and rates on loans are lower, therefore the general background in the credit market is much more smooth. In addition, bank loans are an important part of their culture. In Germany, Italy, France, four or five generations have been taking loans from banks, and we, in Eastern Europe are the first, or at best, the second generation, who have gained access to such an opportunity. We are still learning to live with it, and this is not easy.

Partner of FinExpertiza Serbia.

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15 January 2019

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