Low-performing quick loans have reached 12% of the whole credit portfolio which is  a decrease by 11.8% you. As of March 2018 quick loans account for BGN 2.85 bln, which is 9.8% yoy increase and 3.6% in Q1. The growth trend is mainly due to rise of consumer credits.  These are the main findings of the Bulgarian National Bank quarterly report on corporations specializing on lending. The quick loans segment grows much faster than the banking loan business, which has gained 2.1% yoy.

The trends show clearly that there is decreasing demand for instant loans for business matters. Over 81% of fast loans are consumer or residential, and account for BGN 2.29 bln, which is 12% growth yoy.

Since March 2017,  BGN 460.3 mln were allocated to firms. The total amount of loans to companies decreased by 0.5%, while the share of fast loans for companies dropped to 16.4 percent. It seems business prefers funding from banks.

Confidence and better performance

There is a strong demand for loans with a maturity of between 1 and 5 or more than 5 years, which is a signal for consumers’ confidence and trust.

Increased demand goes together with another positive trend – a reduction in non-performing loans by 11.8% yoy. In late March, the amount of non-performing loans was BGN 342.8 million and formed 12% of the total loan portfolio. This is due to the smart strategy of lending corporations to sell NPLs to debt collection agencies fast.