Structural and Value Dimensions of Household Indebtedness in Bulgaria

Abstract

The assertion that household indebtedness is directly related to financial macrostability is considered an axiomatic rule in economic theory. The presence of a high level of indebtedness and sharp increases in its values are considered by experts as an indicator of an impending financial crisis and recession. The study of the dynamics and trends in household debt liabilities changes could answer many questions related to households’ financial stability and the measures that regulators should take. This research issue is particularly relevant in the current economic crisis caused by the global Covid-19 pandemic. The analysis of the structural and value dimensions of household indebtedness provides the necessary basis for studying the financial sustainability of households, with which they enter this challenging period.