The assets of Bulgarian banking system rose by 25 % in 2001 and reached BGN 12,2 BLN (USD 5,4BLN), figures of the Bulgarian National Bank, show. Confidence in the country’s banking system has been slowly recovering, after the severe financial crisis in 1996-1997 when nearly one-third of the banks closed down. Bulgaria’s assets still lag behind in dollar denomination. The banking system operates under a strict IMF-backed currency board regime introduced in 1997, with the lev pegged to the euro since 1999. It includes 29 Bulgarian banks and eight branches of foreign banks. Banks extended BGN 4,145 BLN in credits last year, which is up by 38% over 2000, but two times lower than end- 1996 figures. Credits accounted for 14,5 % of the GDP at end-2001. Last year banks operating in Bulgaria attracted BGN 9,6 BLN, which accounts for 78% of the system’s liabilities. The sector showed BGN 319 M profit at the end of last year, up 13% over 2000.

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