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♦ Romania is the country where people save the least money in Europe ♦ The European average is 27% of households without savings, and in Romania the rate is almost 40%, says Serge Offers, chief financial officer of ING Bank Romania ♦ “Young people will have to adapt to new consumption conditions”.
The current period of crisis caused by the COVID-19 pandemic has changed the reality in which we live, which means that people, especially young people, will have to get used to and adapt to new forms of consumption, Serge Offers said in a video conference. CFO of ING Bank Romania.
“I believe that since the last financial crisis in 2008-2009 there have been many years of economic growth and progress. People have become accustomed to large double-digit wage increases and no one has raised the issue of unemployment or significant changes in the labor market. Now people need to change their view of reality In the coming period, reading the reports of the rating agencies or the report of the European Commission on the economy, almost everyone expects that the level of wages will not increase. brings a new reality to the table. Young people will have to get used to and adapt to the new consumption conditions. “
Serge Offers further explained that in Romania, people have less money saved. At European level, the average of households without savings is 27%, while in Romania it is almost 40%.
“I think not having those savings is one of the reasons people are vulnerable during this period. Financial health also comes from spending. How much you spend. This is important to me, but it is also important from a banking point of view. How do you ensure that people don’t spend more than necessary? If you step back and look at the history of the Romanian economy, its engine was consumption. Consumption is good, especially when you see wages rising and The population’s disposable income is increasing. Consumption is healthy for the economy, but if consumption is driven by vacation loans or goods that it doesn’t need, it creates problems over time because it ends up with too much debt and limits the way it lives. his life “.
People should take this into account when making financial decisions, said CFO ING Bank Romania.
“What I have noticed is that many people want to save and they like to save, but it is not their habit. At the end of the month, almost 70% of the population in Romania has insufficient income at the end of the month, and the potential for saving it’s quite limited in some cases. “
In the past 10 years, many things have changed for the better, and from a legislative standpoint, people are more protected against overindebtedness, says Serge Offers.
“In the end, the banks want people to be able to pay off their loans.” The interest is not to avoid the repayment of the loans. You need to make sure you don’t have too much debt, especially if you don’t have enough resources to support it. “
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