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Debt ratio down 30 per cent for households in last five years

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Debt as a percentage of Gross Domestic Product (debt ratio) of households has decreased by nearly 30 per cent and for non-financial corporations 57 per cent in the last five years, the Central Bank announced on Monday.

Specifically, household assets in financial assets at the end of December 2021 amounted to 57.9 billion euros, of which 61 per cent relates to cash, deposits and loans, 2 per cent relates to securities, 20 per cent were shares and 17 per cent other financial instruments.

Their debt amounted to 20.1 billion euros at the end of December 2021, with the relevant debt ratio being at 86 per cent of GDP, showing a slight decrease compared to the previous quarter due to GDP growth. However, compared to December 2016, the household debt ratio shows a significant decrease of up to 30 per cent.

Similarly, the corresponding assets of non-financial corporations amounted to 65.7 billion euros with a ratio of 17 per cent in cash and deposits, 5 per cent in loans, 1 per cent in securities, 48 per cent in shares and 29 per cent in other financial instruments.

The sector’s debt at the end of December 2021 amounted to 36.2 billion euros with the debt ratio being at 155 per cent of GDP, recording a slight decrease compared to the previous quarter mainly due to GDP growth.

However, compared to December 2016, the debt ratio of non-financial corporations shows a significant decrease of up to 57 per cent.

The assets of insurance corporations also show a small increase, which in terms of purely financial instruments amounted to 4.3 billion euros and is distributed as follows: 11 per cent in cash and deposits, 3 per cent in loans, 24 per cent in securities, 49 per cent in shares and 14 per cent in other financial data.

Respectively, the investment funds have assets in financial instruments of 8.2 billion euros invested 5 per cent in cash and deposits, 13 per cent in loans and securities, 80 per cent in shares and 3 per cent in other financial instruments.

Investments in financial instruments of the pension funds amounted to 3.9 billion euros and mainly concern cash and deposits at a rate of 26 per cent, 15 per cent in loans, 3 per cent in securities, 44 per cent in shares and 11 per cent in other financial instruments.

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