Bad credits in Bulgaria can reach 15%

Bad credits in Bulgaria can reach 15%

Non-performing bank loans will continue to grow in number, going up from 12% (end 2010) to 15% in the course of this year, show prognoses of Bulgarian bankers. These are credits under which users have been paying monthly dues for at least 3 months.

The exact sum of non-performing by December 31 is EUR 3.2 billion, of which 2.35 billion are hopeless dues because installments have not been paid over 6 months. That, however, would not jeopardize Bulgaria's banking system as it is stable, flexible and competitive, according to the analysis of the Moody's rating agency.

Even in the course of the difficult 2010 the banking sector in Bulgaria has closed down with a profit of EUR 315 million. To compare, in Romania the banks for the first time since 1999 are at a loss and have closed down the previous year with EUR 71 million worth of losses. 22 out of the 42 banks in Romania ended in a negative result. In Bulgaria, only 6 out the existing 30 treasuries have ended in a loss.

According to experts, banks' profits this year may go up by 10-20% because the economy is reviving. Sourse BNR

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