Espaρa

Over-indebtedness statistics

1. Introduction

What follows are some statistics on the situation both on a European scale as web as in Spain, referring to the level of over-indebtedness. The trends per country are appreciable, and in the case of Spain development over the last ten years shows the weight that home purchase has in over-indebtedness

2. Over-indebtedness in European citizens

If we take into account the data produced from community statistics from the Euro barometer this year, 14% of European citizens confirm they have a loan for purchase of vehicles or furniture, which is longer than a year's duration. This figure rises to 29% in Denmark or 23 % in Luxemburg. The lowest figures are recorded in Italy (8%) and Greece (4%)
Comisiσn EuropeaEscuela Europea de ConsumidoresGobierno de CantabriaMAG (Estudios de Consumo) S.L.IFAVConsomation et Logement Cadre de VieAssociation d'avocats

 

In Spain noteworthy is the growing percentage that represents home purchase in the private sector.

 

 

As far as mortgages are concerned (considering the group of countries targeted in this study) the results obtained are as follows

 

Less than 10 years

From 10 to20 years

More than 20 years

Country

Yes

No

NS

NC

Yes

No

NS

NC

Yes

No

NS

NC

Germany

3,9

86,6

0,4

9,1

6,5

85,0

0,4

8,1

3,5

87,5

0,4

8,7

Belgium

6,7

86,2

0,6

6,5

16,5

76,8

0,2

6,5

2,7

90,7

0,5

6,0

Spain

4,6

87,5

0,6

7,4

10,3

82,4

0,4

7,0

1,6

90,4

0,6

7,5

France

7,3

90,2

0,3

2,2

11,1

86,5

0,3

2,2

0,9

96,5

0,5

2,2

Average

5,6

11,1

2,17

 

 

- In loans with duration of less than 10 years France is in first place.
-In loans with duration of between 10 and 20 years Belgium is in first place.
-In loans with a duration of more than 20 years Germany is in first place E
-Considering all mortgage loans in the 4 countries studied, the most frequent are of   between 10 and 20 years

 

If we group together the data corresponding to the different types of mortgage loans (regardless of duration) the ranking of the four countries studied would be as follows

1st Belgium: 25,9 % of those interviewed
2nd France: 19,3 % "             "
3rd Spain: 16,5 % "             "
4th Germany: 13,9 % "              "

 

3.The statistics in Spain


Private Sector loans
(Millions of euros)

 

Year

Total

Home purchase

% S/ Total

Purchase of consumer goods

% S/ Total

Others

% S/ Total

1983

85 421

6 567

7,68

1 766

2,06

2 532

2,96

1984

85 108

7 651

8,98

1 938

2,28

2 742

3,22

1985

91 852

8 467

9,21

2 442

2,66

3 236

3,52

1986

100 396

10 234

10,19

3 357

3,34

3 809

3,79

…………………………………………………………………………………………………………………….

1997

129 626

91 204

70,36

11 756

9,06

20 908

16,12

1998

156 868

108 333

69,05

16 064

10,24

25 638

16,34

1999

185 868

128 126

68,93

17 379

9,35

31 496

16,94

2000 (2Ί tr.)

201 753

140 062

69,42

18 161

9,00

34 257

16,97

Source: Bank of Spain

 

The evolution of private sector loans in Spain demonstrates significant trends that are worth analysis. Noteworthy is the growing percentage that represents home purchase in the private sector, since this has experienced spectacular growth from a value of 10% in the mid 80's to nearly 70% at the time of writing. The rise in the prices of dwellings in just over a decade is responsible for this situation. As far as purchase of consumer goods is concerned, growth is moderate, although percentage has multiplied 5 times in just over a decade