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Bad Credits in Bulgaria Are Covered with Reserves

BNB governor Ivan Iskrov, the chairman of the Financial Supervision Commission, Stoyan Mavrodiev, and the chairperson of the Bulgarian National Audit Office Valeri Dimitrov (right to left) opened a conference of the challenges before the financial system

Photo Iliana Kirilova

"The size of the bad credits in Bulgaria should not be a worry of the citizens because the Bulgarian bank system has enough buffers for protection," the governor of the Bulgarian National Bank (BNB) Ivan Iskrov stated at a scientific forum on the challenges before economy.
According to the data of the BNB, the bad credits amount to 16%, but according to Mr Iskrov their size is 10% of all credits if the provisions are removed. The role of the BNB is when a problem occurs in the economy and the size of the bad credits increases to require an adequate allocation of capital provisions," Mr Iskrov explained.
The analysis of the BNB show that the economic growth in Bulgaria for 2012 will be about 0.7%, but some corrections through the year are not excluded. The latest forecasts of the Ministry of Finance is for a 1.4% economic growth. BNB Governor recommends that long-terms solutions are sought in for the development of Bulgaria's economy.

Valeria Stoykova