The problem of public indebtedness represents a serious socio-economic problem for many countries, including France. Especially in times of economic hardship, many citizens face the problem of being unable to repay loans and debts to banks in a timely manner. In this article, we will look at the experience of banks in combating public debt and the role of the state in solving this problem.
The role of banks in the settlement of public debt
Banks play an important role in resolving the problem of public indebtedness. They offer various programmes for restructuring loans, granting deferred payments, as well as reducing interest rates for clients in difficult financial situations. Banks are also active in providing financial counselling and financial literacy education to the public, which helps prevent new debt.
- Loan restructuring is the process of changing the terms of a loan to reduce the financial burden on the borrower while maintaining the term and total amount of the loan.
- Financial literacy is the level of knowledge and understanding of financial concepts and processes that enables a person to make informed and sound financial decisions.
The role of the government in addressing the problem of public indebtedness
However, in addition to the efforts of banks, the government plays an important role in addressing the problem of debt. The French government takes measures to support the population in financial distress by providing social benefits, subsidies, and financial assistance to the most vulnerable segments of the population.
- Social benefits are a form of state support provided to citizens in the form of additional payments, services or favourable conditions aimed at improving their social situation.
- Financial assistance is material or other support provided by the state or public organisations to citizens in financial difficulty to solve specific problems.
Conclusion
An effective solution to the problem of public debt requires a comprehensive approach involving efforts on the part of both banks and the government. Co-operation between financial institutions and the government plays a key role in achieving success in this area. The development of financial education and counselling programmes, as well as the provision of social support to the population, helps to reduce the level of debt and improve the financial situation of citizens.
