The CEO of Raiffeisen Bank for Bulgaria, Oliver Roegl, believes that the country’s weak judicial system and default loans of banks are the key problems facing foreign and local investors.

“When I arrived to Bulgaria, I expected that the judicial system would work efficiently, as part of the EU. However, there are still much efforts required in order to streamline it with the standards in the continent”, said Roegl, cited by the Bulgarian Telegraph Agency.

Another problem he refers to is the high rate of default loans issued, at 17%. Roegl believes the country’s financial institutions have the capacity to tackle that problem, without affecting their recipients.

Raiffeisen Bank predicts a 0.5% growth of the Bulgarian economy for this year, and 2% for next year.

“The macroeconomic situation in Europe still has its negative effect on Bulgarian business and consumption. The Eurozone just went out of recession, and this could have a positive effect on Bulgaria as well”, added Roegl.

In his view, the banking sector and the real estate market in the country are fairly stable.

Oliver Roegl took over Raiffeisen Bulgaria in August. Previously he headed the bank's branch in Serbia.