Bulgaria's Bank System Can Cope with Bad Credit - Analyst
Bulgaria's bank system has enough buffers to cover bad credits, according to Open Society economist Georgi Angelov.
Giving a lecture Saturday, Angelov commented that although bad credits have reached unprecedented highs, the banking system in the country remains stable.
According to data quoted by the economists, 14.45% of all loans (outside of loans to financial institutions) in Bulgaria around September 2011 are delinquent.
Loans amounting to BGN 3.8 B have been discounted as uncollectible around the same date.
At the same time, the amount of loans not covered by bank provisions is only BGN 0.7 B, or 1.1% of the total amount of loans in Bulgaria.
Angelov commented that the Bulgarian banks' own capital and a good level of liquidity (25.9%) provide good buffers for bad credits.
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