Belgian families EUR 5bn deeper in debt

11 August 2005

BRUSSELS — Loans and credit accounts of all Belgian residents went a further EUR 5 billion into the red in the first three months of this year.

Belgian National Bank (NBB) said the quarterly rise was the strongest increase on record, newspaper ‘De Morgen’ reported on Thursday.

In total, the Belgian public has a debt of EUR 128.5 billion. That amounts to EUR 12,500 per resident — also a record.

Family debts rose by EUR 4.97 billion in the first quarter of this year, primarily accounted by mortgage debts (EUR 1.89 billion) and consumer credit, such as car loans (EUR 1.22 billion).

Loans of a maximum of one year are also increasing in popularity, swelling by EUR 372 million, the largest quarterly rise since mid-2003.

“These are primarily loans that large shopping chains grant with large purchases,” the NBB said.

Subject: Belgian news