FACTORS CONTRIBUTING TO THE DEBT GROWTH IN THE HOUSEHOLDS SECTOR IN MACEDONIA AND ASSESSMENT OF ITS POSSIBLE IMPACT ON THE FINANCIAL SYSTEM

Апстракт

This paper reviews some recent developments in the finances of the household s’ sector in the Republic of Macedonia, where it was established that households are increasingly gaining importance as a debtor in the banking system. The aim of this paper is to determine the factors that contribute to the increase in the debt of the “households” sector in Macedonia and to assess its possible impact on the financial system. The main contributory factors for the debt increase are the favorable movements in the supply and demand of loans, the change in households’ attitude to borrowing, the favorable macroeconomic environment, the innovation in financial products and the favorable government policies. The assessment of the impact on the financial system is based on the financial indicators that are most commonly used in economy, such as debt in relation to GDP, debt in relation to disposable income and the debt service ratio. The results show that the possibilities for increasing the household debt are not yet exhausted.