Bad Debt
The number of the personal and business bad debt has been steadily increasing for a second consecutive month according to the statistics of the Bulgarian National Bank. In the end of February 2009 the bad and restructured debt has reached 1.65 billion levs which is an increase of 314 million lev only in a month. This is 3,4% of all loans. In comparison last year this ratio was slightly above 2%. According to analysts this level is still not worrying as the overall condition of the Bulgarian bank system is rather stable. Companies which collect bad debt claim that their work has increased by 40% in the first two months of 2009. The level of the repayment of loans received by Bulgarian banks have decreased by 20%. The level of partial repayments has increased, while the level of total repayments have decreased. Job losses and the increase of the part-time employment are key factors for this.
In February 2009 the number of the delayed repayment has increased by 19% in comparison with January 2009 and for January 2009 the increase was 13% in comparison with December 2008.
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Category: Bulgaria, Economy | Tags: bad debt, banking system, banks, Bulgarians, increase, loans, ratio, repayment Comment »