Non-financial companies' debt reaches EUR 80bn in 2009 - BIA

Non-financial companies' debt reaches EUR 80bn in 2009 - BIA

Bulgarian non-financial companies continued to accumulate debt in 2009 despite their ambition to reduce costs in the first crisis year for the country's economy, the Bulgarian Industrial Association (BIA) said.

Local firms' combined arrears to the National Revenue Agency (NRA), National Social Security Institute, banks, suppliers, other businesses and staff grew 6.0% on the year to BGN 156.6 billion in 2009 against a 4.9% rise in the country's gross domestic product (GDP) in the period.

Intercompany debt accounted for about two thirds of total liabilities, or BGN 103.6 billion in 2009.

According to BIA's chairman, Bozhidar Danev, the main reason for the increase in liabilities was the contraction in imports and investments.

"In 2011, we expect a rise in bankruptcies due to companies' worsened financial metrics, as well as an increase in bad loans. This will lead to higher indebtedness of businesses," BIA's deputy chairman, Kamen Kalev, said.

As at end-2009, the outstanding debt of Bulgaria's government and municipalities to local businesses came in at BGN 833 million, the bulk of which has already been repaid.

The companies that amassed the largest amounts of debt were entities engaged in the trade sector with BGN 34.6 billion in outstanding liabilities, followed by construction and real estate firms with arrears of BGN 22.6 billion and BGN 21.6 billion, respectively. Source Dnevnik

Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.