2023-06-29 06:14:34
On average, half of the adult population of the European Union borrows money, according to data from the World Bank. We are not talking only about bank loans, but about all categories of loans, including from family and friends.
Banking operation Photo: INQUAM Photos / Octav Ganea
But there is a major difference between the two big halves of Europe. While Western Europeans borrow in large numbers from banks, Eastern Europeans turn to friends and family.
In countries such as Germany, Austria or Luxembourg, between 60% and 80% of the population over the age of 15 borrowed, and in these cases, the source of the loan was, in most cases, the bank.
There are several factors that can explain this phenomenon. One is the high level of economic development in Western European countries. The mature financial infrastructure, developed over time, created the prerequisites for a solid banking market, which facilitated the lending potential.
For residents of Eastern European and Balkan states, loans remain either inaccessible or a last resort. The reason is that in many situations their income level does not make them desirable customers for banks.
Family or friends are a source of trust, often relied on by those who want to borrow in Romania, Bulgaria and Greece.
In 2021, 41% of the population over 15 borrowed money in Romania, according to World Bank data, and a little over half of these people turned to family and friends to borrow money.
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