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Sat, Feb 11 2012
Bulgarians take loans for essential needs as incomes dip
Photo: Julia Lazarova
Bulgarians are progressively lapsing into poverty, taking bank loans to pay for the bare essentials, according to research by the Sociology Institute of the Bulgarian Academy of Sciences (BAS).
The debt list is topped by heating, electricity, water bills, taxes and social security contributions.
Duhomir Minev, professor at BAS, called for an overhaul of the country’s social policy and a revision of official statistics and poverty lines.
A poll of 1000 people by the researchers revealed that almost 20 per cent of the population live below the poverty line and the trend is deepening.
"Common people started to feel the pinch back in 2007 but politicians acknowledged the crisis only after it swept into the banking sector," Minev said.
The local currency dominates the loans taken by Bulgarians, the bulk of them drawn between 2006 and 2008. Most Bulgarians tapped into consumer loans, followed by credit cards and mortgages. Most debtors have monthly incomes of up to 600 leva. Most loans range between 5000 to 10 000 leva.
More than half of the polled said their household budget has shrank after they took a banking loan.
However, only three per cent of the debtors fail to pay their dues, the report said.
Source: Dnevnik.bg
The debt list is topped by heating, electricity, water bills, taxes and social security contributions.
Duhomir Minev, professor at BAS, called for an overhaul of the country’s social policy and a revision of official statistics and poverty lines.
A poll of 1000 people by the researchers revealed that almost 20 per cent of the population live below the poverty line and the trend is deepening.
"Common people started to feel the pinch back in 2007 but politicians acknowledged the crisis only after it swept into the banking sector," Minev said.
The local currency dominates the loans taken by Bulgarians, the bulk of them drawn between 2006 and 2008. Most Bulgarians tapped into consumer loans, followed by credit cards and mortgages. Most debtors have monthly incomes of up to 600 leva. Most loans range between 5000 to 10 000 leva.
More than half of the polled said their household budget has shrank after they took a banking loan.
However, only three per cent of the debtors fail to pay their dues, the report said.
Source: Dnevnik.bg
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