Growth of bad fast loans speeds up again, now exceeding 18%

Non-performing loans extended by non-bank institutions, or the so-called fast loans, increased by nearly 33% at the end of June 2011, compared to the same period of last year, standing at BGN 350.1 mln, Bulgarian National Bank (BNB) data showed. Experts reported that the share of problem loans had already reached 18.1% of the total credits extended. Over the last year, problem loans have been in the range of 15-16%, registering a slight decline in the last quarter.

Loans extended by non-bank companies stood at BGN 1.937 bn at the end of June, BGN 184 mln up from the same period of last year. Compared to three months earlier, they increased by BGN 45.2 mln. According to the data, the receivables of companies under extended credits have been influenced by the lower level of demand for loans from other institutions. At the end of June, these amounted to BGN 863.9 mln, compared to BGN 969.3 mln as of June 2010.

As usual, households accounted for the largest share of loans, standing at BGN 1.53 bn. On an annual basis, credits allocated to them increased by BGN 46 mln and their growth from March was by 2.3% (BGN 34 mln). Despite the registered increase, the share of households in all extended credits decreased by 10% to 79.4%. The downward trend in fast loans drawn by households started last year and is associated with the uncertainty of consumers during the economic crisis.

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