The number of employed people in Bosnia and Herzegovina (BiH)and the number of citizens who have loans from banks is approximately the same, meaning that almost every employed person has a loan, according to official data.
According to data from the Agency for Statistics of BiH, in November 2024, the number of employed persons in BiH was 859.261.
“Of this number, 392.311 were women. Compared to October 2024, the number of employed persons increased by 0.1%, and the number of employed women also increased by 0.2%,” states the data from the Agency for Statistics of BiH.
On the other hand, data from the Central Credit Register of the Central Bank of BiH (CBBiH) from November last year show that currently, 846.065 citizens have loans with banks in BiH.
“Total loans granted to the population by banks in BiH at the end of November 2024 (currently available data) amounted to 12.83 billion BAM,” the data states.
It is added that the data show that citizens of BiH mostly take out general-purpose consumer loans, followed by loans for the construction or purchase of new housing units, and then for the purchase of existing housing units.
“Of the total amount of loans granted to the population by banks in BiH, the largest portion relates to general-purpose consumer loans, which at the end of November 2024 amounted to 9.3 billion BAM or 72.5%, followed by loans for the construction or purchase of new housing units, which amounted to 1.99 billion BAM or 15.5%, and loans for the purchase and renovation of existing housing units, which amounted to 1.07 billion BAM or 8.3%. Credit card loans accounted for 277.1 million BAM or 2.2%, while the remaining 193.6 million BAM or 1.5% was for entrepreneurship and car purchase loans,” states the data from the CBBiH.
Economist Igor Gavran believes that, although the data on the number of loans alone does not sufficiently indicate the burden these debts represent – whether they were a well-thought-out financial decision or a real necessity due to the inability to cover basic living expenses from regular income – it is still concerning that so many citizens even consider taking on debt.
“Especially since we know that borrowing conditions in BiH are not favorable and generally only benefit banks, i.e., lenders. Probably some of these loans also belong to unemployed individuals, as loans for pensioners, for example, are popular, but in that case, the only realistic motivation is the inability to finance obligations from a pension, not some long-term financial planning. All this shows how wide the gap is between those who have far more than they need and contribute to the rise in deposit value and the vast majority who only contribute to the increase in indebtedness. Being debt-free has become rare, and that is a problem,” Gavran explains.
Admir Arnautovic, president of the Association “Consumer Club of Central Bosnia“ from Travnik, stated that we have long been aware that the vast majority of citizens in BiH live on credit.
“Whether it is people taking out loans to survive the start of the school year for their children, winter, or expensive medical treatments not covered by health insurance, or, on the other hand, for buying a new car, travel, or a vacation home, a loan is always a loan and represents a noose around the neck, regardless of how it may seem like a favorable solution at a given moment. Although this data is concerning and reflects the state of society in general, the real problem is much bigger and rarely discussed. Every employee has at least one debit card, and most also have a credit card. There is also a large number of so-called consumer cards. The use of these cards and going into ‘overdraft’ is an everyday reality for most of our fellow citizens, whose salaries only serve to cover these ‘overdrafts,’ and then they struggle to survive until the next paycheck in a vicious cycle of debt to banks. When these ‘overdrafts’ are added to the population’s loans, which amount to around 13 billion BAM, we probably reach a figure of about 15 billion BAM – how much we owe only to the banking sector, or about 7.000 BAM per citizen of BiH. And that doesn’t even include the money we have borrowed from relatives, friends, or neighbors. That is why the record revenues of betting shops and lotteries are not surprising, because, unfortunately, we are so deep in debt that only luck can save us,” Arnautovic emphasized.
