On average, half of the adult population of the European Union borrows money, according to data from the World Bank. We are talking not only about bank loans, but about all categories of loans, including from relatives and friends.

But there is a big difference between the two big halves of Europe. While Western Europeans borrow heavily 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 took out a loan, and in these cases the source of the loan was in most cases a bank.

There are several factors that can explain this phenomenon. One is the high level of economic development of Western European countries. A mature financial infrastructure that has developed over time has created the prerequisites for a strong banking market, which has contributed to credit capacity.

For residents of Eastern European and Balkan countries, loans remain either unavailable 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 that is often relied upon 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 the World Bank, and just over half of these people turned to family and friends to borrow money.

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