Non-performing quick loans in the Bulgarian financial sector continue to decline, while new loans granted are on the rise, according to data from the Bulgarian National Bank (BNB). The decline in overdue loans is evident both in absolute terms and as a share of companies’ portfolios. According to BNB data, as of the end of March, non-bank lending exceeded EUR 4 billion for the first time, with a 2.26% increase in just three months and nearly 17% year-to-year.

At the end of March non-performing loans (NPL) had decreased by 4% over the quarter and by 6.13% year-to-year (see the chart). As a share, they are at their lowest level since September 2024. Non-bank loans include both typical payday loans and consumer loans from banking groups that outsource this type of lending to separate companies.

The largest growth is seen in loans with terms of 1 to 5 years – over the past year, they have increased by nearly one-third. However, there has been a decline in the shortest-term loans, with maturities of up to 12 months. On an annual basis, however, all types of non-bank loans show growth.

The financial leasing market is not developing quite as smoothly – there has been a slight increase in delinquent loans. However, their share traditionally remains low as a percentage of the total portfolio. According to BNB data, at the end of March, 1.77% of all financial leasing receivables were past due. The growth on an annual and quarterly basis is similar – just over 10.5%. There was a sharper increase in September, but NPL subsequently declined. At the same time, the market continues to grow uninterrupted for another quarter, reaching nearly EUR 3.9 billion.