EVERY FIFTH CREDIT IN BULGARIA IS OVERDUE

Every fifth bank loan in Bulgaria was overdue or had been restructured by the end of April, BNB (Bulgarian National Bank) data showed. Problematic credits in our country’s banking system have already exceeded BGN 7.73 bn, accounting for nearly 20% of all extended loans, excluding overdrafts. The monthly increase is trifling – BGN 140 mln - but if we look back a year ago, we will see that bad loans have increased by BGN 2.43 bn. BNB experts announce quarterly only the share of non-performing loans, overdue for more than 90 days, and at the end of March these reached a record-high 12.93%.

Companies are facing the most serious problems in servicing their liabilities in due time. After two months of relief, non-performing corporate loans rose again at the end of April by BGN 113 mln. Thus, the timid signs of recovery in February and March failed to become a persisting trend and the volume of corporate bad loans reached BGN 4.68 bn or BGN 1.73 bn up from a year earlier. So, 20.5% of the corporate loans were classified as problematic, including non-performing exposures, losses and restructured credits. Corporate loans totaled BGN 22.862 bn and overdrafts stood at almost BGN 9 bn.

Problematic and restructured loans of households and individuals also rose to BGN 1.35 bn, accounting for 18% of the total volume. Although the amount of problematic mortgages continued to increase, its growth slowed down considerably to just BGN 5 mln for April, and totaled BGN 1.487 bn.

The slight increase in the bank portfolio of loans and overdrafts in April can be considered a positive trend. According to BNB data, it was 0.42% on a monthly basis and stood at the record-high of BGN 50.79 bn. Lending to businesses increased by BGN 223 mln in April and reached BGN 31.88 bn at the end of the month. Consumer loans reached BGN 7.54 bn and housing credits stood at BGN 8.7 bn.