- Political stability
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- Macroeconomic developments
submited on 19.05.2010 in category Monetary policy | Macroeconomic developments
Assets of fast-loan companies decreased by some BGN 480 million or 15% in a year. Non-performing loans picked up – from 10% of total credit as of end-March 2009 to 15% a year later. More than 80% of the credit is extended to households, either for consumer or house purchases. About 12% of the total credit is short-term and is due in the current year.
On one hand, credit institutions have more difficult time securing financial resource in the context of the credit squeeze, while growth potential remains limited in view of job and income losses. On the other hand, households are less willing to accumulate more debt under increasing uncertainty. On the more positive note, the pace of decline has slowed down and this trend will likely be maintained throughout the remaining months of 2010.