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The Bulgarian returned to fast loans, leasing is also growing


Most cars are bought on lease, according to BNB data. PHOTO: Reuters

The pandemic turned out to be more than favorable for quick loans and Bulgarians have returned to them, according to the latest BNB data.

At the end of March 2022, lending companies outside banks gave a total of BGN 3.906 billion, and for the year the amount increased by BGN 777.9 million. Compared to the end of 2021, the increase is by BGN 204.5 million.

For comparison, at the end of the pre-pandemic year 2019, the money distributed by quick loans was BGN 1 billion less. The explanation for the decline at the time was that relaxed conditions and low interest rates had led people mainly to bank loans.

The BNB data show that loans with a maturity of over 5 years, amounting to BGN 1.638 billion, predominate. They increased by 18.8% (259.3 million) compared to a year earlier and by 6.1% (94, BGN 7 million) compared to the end of December 2021. However, the relative share of these loans in the total amount of receivables decreased from 44.1 to 41.9%.

Loans with a maturity of over 1 to 5 years are BGN 886.3 million and increase by 17.8% (134.2 million) on an annual basis. Compared to the end of last year, their increase is by 5.8% (BGN 48.4 million).

The short-term ones, which must be returned within 1 year, are BGN 1.093 billion and increase by 55.4% (389.6 million) compared to the end of the same month in 2021 and by 5.5% (56.5 million) compared to the fourth quarter of 2021.

As of the end of March 2022, the amount of non-performing loans was BGN 288.6 million. They decreased by 1.8% (5.2 million) on an annual basis, but compared to the end of last year there is an increase of 1.7% (BGN 5 million).

Leasing is also booming in the pandemic, other BNB data show. At the end of March 2022, its total amount for businesses and households reached BGN 3.618 billion. The leasing granted to households turned out to increase more as a percentage of bank lending. At the end of the first quarter, goods purchased on installment amounted to BGN 812.4 million, an increase of 15.3% (107.7 million) on an annual basis.

As expected, most leasing cars are bought – the amount is BGN 1.883 billion at the end of March, and for the year it has increased by over 217 million. The business has bought buses and trucks for BGN 1.322 billion. The amount has increased by BGN 32.7 million. BGN 1.039 billion have been spent on machinery, equipment and industrial equipment, an increase of BGN 81.8 million compared to March 2021.

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