For the first time in the last three year, the restructured bad loans in the banking system recorded a decline, according to data of the Bulgarian National Bank. Statistics reports that in December the problematic loans decreased by BGN 17.4 mln to BGN 9.08 bn month-on-month. Thus, the share of bad loans and restructured credits declined to 21.9 % from 22.1 % at the end of November. The BNB data shows that the last drop was observed in March 2009 when they slumped by 0.4 percentage points to 4.09 %. From January to late December, the banking system generated problematic loans for BGN1.91 bn.
The reversal of the negative trend is contrary to the expectations in the branch. In fact, the financial institutions predicted in their last analyses a peak of non-performing loans in the middle and even at the end of 2012. According to the methodology of the Central Bank, the indicator involves non-performing exposures (from over 80 up to 91 days), financial loss (over 180 days ), as well as restructured loans. According to the latest BNB data as of 30 September, the proportion of bad loans was 14.45%.
Generally, Bulgarian banks granted loans amounting to BGN 53.242 bn at the end of December - a resource of BGN 34 bn was directed to the business sector and credits worth BGN 18.8 bn were extended to households. Last year, the total lending volume increased by BGN 1.816 bn, which is by BGN 97 mln less than the positive growth in problematic loans. Last year, companies borrowed 5.7% more loans, while household lending reported a decrease of 0.4%. However, the share of housing loans increased by 1.1% up to BGN 8.80 bn. In the meantime, the business with the purchase of bad loans exceeded BGN 583 mln and merely in December the bought-out debt amounted to BGN 212.7 mn.
Text and photo: www.klassa.bg(27.01.2012)