Bulgaria's Banking Sector Faces Increased Costs as Non-Performing Loans Surge
Bulgaria’s banking sector is bracing for an increase in non-performing loans (NPLs), as the cost of covering potential bad debts has nearly doubled in 2024. According to the Bulgarian National Bank (BNB), the provisions for impairment of financial assets reached 578 million leva by the end of November, a significant rise compared to 275 million leva in the same period last year. This surge in expenses has been a concern for the central bank, which has repeatedly warned commercial banks about the growing risks of bad loans amid a credit boom and easy access to financing....
