EIB: Credit Demand Up, Supply Tight in Bulgaria

Credit demand in Bulgaria has increased over the past six months but supply conditions have sharply deteriorated, according to the European Investment Bank’s latest CESEE Bank Lending Survey. The report notes that household and SME sectors are driving demand, which is expected to continue rising. However, banks have tightened lending, particularly in mortgages and corporate loans, CE Report quotes BTA

Despite current challenges, supply conditions are projected to stabilize in the next six months. Access to funding is improving and profitability in Bulgaria remains high compared to parent banks. Non-performing loan ratios have held steady but are expected to worsen slightly in the coming period.