One in two household survives on loans each month

Almost one in two Greek households is forced to cover daily needs by borrowing. The financial crisis of recent years and the pandemic of job suspensions in several sectors of the economy since March 2020 have created a suffocating barrier for households, leading them to borrow so that they can survive.

It is characteristic, according to data from the Hellenic Statistical Authority (ELSTAT), that last year 46.5% of households stated to borrow to pay daily living expenses with the main source of financing being banks (loans and cards), while in daily expenses relatives and friends seem to be the lenders.

The suffocating conditions are also shown by the fact that 35.2% of the households state that they do not have savings.

The ESTAT data, which are included in the Household Income and Living Survey (EU-SILC), are part of a Community Statistical Program, in which all EU Member States participate and survey household living conditions and image of their borrowing.

Loans

Although 72% of households do not loan obligations, excluding any mortgage for the purchase of the main house, 28% are obliged to repay at least one loan, of which 19.6% one loan, 6 , 5% two loans, 1.7% three loans and 0.2% four loans.

In fact, the average amount owed, including interest and capital (excluding any mortgage for the purchase of the main residence), is estimated at 236.70 euros, while the corresponding amount for poor households is 174 euros and for non-poor households at 246.35 euros.

The main reason that households obtain a loan is the purchase of assets (including home furniture and appliances and interior decoration) at a rate of 56.3%, while it is noteworthy that 46.5 % is for the coverage of daily living expenses, 7.9% for education, 7.8%...