Opinion
Bulgarian
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text sizeBanks Reduce Crediting
By Stefka Slavova,
Alternative director for Bulgaria in the EBRD
For the time being we, in the European Bank for Reconstruction and Development are more than cautious with regard to the economic situation in the countries of southeastern Europe. Banks are playing it safe too. After the latest analyses by European economists, the process of more prudent crediting encompasses not only Bulgaria but the whole of Europe. And besides, we should bear in mind that many of the large banks like Commerzbank, Raiffeisen Bank have stated they will abstain from financing new projects. Exceptions are allowed for Poland only where the economy is going well. European banks operating in Asia also reduce crediting. Some of them are even leaving these markets. At the meeting of the international financial institutions in Vienna in January these issues were urgently posed.
Public debates are underway, the situation is under control but no one knows what are the purely financial capacities for new capitalization warrantees for the big mother banks. The highly reputed Banker magazine even claims that Bulgaria is seen as an “investment-risky” country. One of the reasons for this opinion is the presence of many Greek banks in Bulgaria. Hungary is also considered risky and the share of Hungarian banks on the Bulgarian banking market is nor small either. Meanwhile Bulgaria is financially stable against the European background, yet the risks are not to be underestimated. In a nutshell – Europe is in a tough situation, a new recession is looming large, analysts say. This year will be very difficult, more challenging than 2011 or 2007-2008. In all countries, Bulgaria included, the prognoses for economic growth rates have been downgraded.
Recorded by Valeria Stoykova
Alternative director for Bulgaria in the EBRD
For the time being we, in the European Bank for Reconstruction and Development are more than cautious with regard to the economic situation in the countries of southeastern Europe. Banks are playing it safe too. After the latest analyses by European economists, the process of more prudent crediting encompasses not only Bulgaria but the whole of Europe. And besides, we should bear in mind that many of the large banks like Commerzbank, Raiffeisen Bank have stated they will abstain from financing new projects. Exceptions are allowed for Poland only where the economy is going well. European banks operating in Asia also reduce crediting. Some of them are even leaving these markets. At the meeting of the international financial institutions in Vienna in January these issues were urgently posed.
Public debates are underway, the situation is under control but no one knows what are the purely financial capacities for new capitalization warrantees for the big mother banks. The highly reputed Banker magazine even claims that Bulgaria is seen as an “investment-risky” country. One of the reasons for this opinion is the presence of many Greek banks in Bulgaria. Hungary is also considered risky and the share of Hungarian banks on the Bulgarian banking market is nor small either. Meanwhile Bulgaria is financially stable against the European background, yet the risks are not to be underestimated. In a nutshell – Europe is in a tough situation, a new recession is looming large, analysts say. This year will be very difficult, more challenging than 2011 or 2007-2008. In all countries, Bulgaria included, the prognoses for economic growth rates have been downgraded.
Recorded by Valeria Stoykova
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