The wealth of Bulgarians

published on 2/21/12 9:47 AM

Photo: BGNES

Bulgarians have deposited in banks over 30 billion leva, according to statistics. The insecurity brought about by the debt crisis in Europe continues to make Bulgarians feel insecure about the future and save money for a rainy day in anticipation of better times. Bulgarians do this by reducing their consumption and doing away with all unnecessary costs. Can Bulgarians be defined as wealth given that more than 80 percent of them have their own home? Many media analysts elaborate on this issue recently, and here is the situation in facts and figures.

The savings of Bulgarians in banks have almost reached a record high of 32 billion leva, and in December alone they rose to 768 million leva, according to banking statistics. And they probably continue to grow. The survey of Industry Watch shows that every fifth bank deposit in Bulgaria is between 50,000 and 200,000 leva and 11 percent of all savings in banks are to the tune of more than 200,000 leva. The deposits between 20,000 and 50,000 account for 21 percent of all deposits in banks. The rest are smaller deposits, including those lower than 1000 leva. There are also numerous Bulgarians who have no savings at all. The majority of deposits are in Bulgarian leva. About 43 percent of people prefer savings in euros. Unlike the situation 15 years ago, Bulgarians today tend to trust the banking system which is well capitalized even in times of crisis, especially thanks to the frugality of people. Many Bulgarians who have emigrated from the country also opt for saving their money in banks. The relatively good yield of bank deposits gives greater financial security to many Bulgarian households. But this hardly makes them lazier and less enterprising ... Experts say that the amount of bank loans is hovering at around 20 billion leva.

The majority of Bulgarians can be considered wealthy solely because they own a real property. Almost every Bulgarian family has at least one residence of their own. There are quite a few people as well who have more than one real property, either purchased or obtained by inheritance. Bulgarians are true to the tradition handed down from generations and preserving Bulgarian roots – they insist on possessing their own home. And here is the strength of most people. Investing in property in times of crisis is a safe harbor. By rough estimates, the wealth of Bulgarian in real estate alone is estimated at more than 200 billion leva.

An entire website has been dedicated to Bulgarian millionaires. It says that the total wealth of the richest of the 10 wealthiest Bulgarians is estimated at 735 million leva, and the 10th person in the top 10 at 197 million leva. In early 2011, 1673 Bulgarians have declared they received an income of over 1 million leva in 2010. During the economic crisis, the number of Bulgarian millionaires has grown, and the explanation in this website is that many people have sold their businesses.

And, contrary to everything said so far, according to the association of agencies collecting overdue payments, in the economic recession average Bulgarians find it increasingly difficult to cope with the current bills for the home, including repaying their bank loans. The reasons can be found in delayed or unpaid wages from employers, frozen wages, loss of jobs and rising prices. The typical Bulgarian debtor can be described as follows: a person of about 50, who tries to tackle the situation by stopping the lease payments at first. The most difficult thing, however, for Bulgarians is to give up their cars. It is well known that the salaries of Bulgarians are the lowest in Europe. The minimum wage is only 270 leva (135 euro). The explanation that low wages are the result of low productivity of labor in this country does not sound convincing. The minimum wage in Greece, even with the current restrictions, is nearly 600 euros, and this is one reason why many Bulgarians prefer to work there, although on the minimum wage. In Bulgaria, the prices of essential goods and services (mostly heating and food) are constantly rising. The staggering heating bills this winter make many Bulgarians shiver. And the salaries and pensions are frozen. Bulgarians believe that if the heating prices are normalized in accordance with wages it will be easier to deal with other problems.

According to estimates of the Center for Economic Development, next year Bulgarians will say "good-bye" to the crisis. The economic growth will be restored, and the incomes in the private and public sectors will increase. A number of renowned experts, however, do not share similar views and believe that these optimistic forecasts will not come in the near future.

Translated by Rossitsa Petcova

По публикацията работи: Milka Dimitrova

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The wealth of Bulgarians

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