Decline in Loans Taken by Non-Bank Institutions in Bulgaria

Sofia, Bulgaria -

The Bulgarian National Bank reported a decline in loans taken by non-bank institutions, decreasing by BGN 225 million per year, Actualno reported. Last summer, these loans were worth almost BGN 2.7 billion, and in June 2018, they were down to BGN 2.4 billion.

The Non-bank Lending Association commented that there is a tendency for strengthened regulation by the Consumer Protection Commission, and it leads to the dropping out of the market of certain companies, which could be a logical explanation for some reduction in the market.

For quick credits under 1 year, the decrease is less than 1%. For the same period, according to NSI data, the Bulgarians average income increased by 8.7% and the expenses - by 11.4%.

Financial analysts advise the quick credits to be returned ass quickly as possible, and after a survey on attitudes regarding them, it became clear that 60% of respondents do not have and do not plan to have one.