The Role of Household Portfolio Restructuring in Financing of the General Government

Following the crisis, up until the end of 2014, net financial savings of households’ had been gradually increasing, reflected also in the ever greater expansion in financial assets. Since the beginning of 2012, in the course of households’ portfolio allocations, securities have been gaining ground: first government securities, and later mutual funds. During 2013 portfolio restructuring started: households have started to use their savings previously accumulated in bank deposits as well for purchasing government securities and mutual funds. As a result of the above mentioned trends, financing of the general government by households has increased significantly, and according to most recent figures, it is considered to be high even when compared to other members of the European Union. In recent years the increase of household financing has been even more considerable if indirect financing – mutual funds, pension funds – is also taken into account. Present article analyses the impact of households’ savings on the financing structure of the general government in a descriptive way