Non-performing fast loans and those in leasing have increased in March, according to data from the Bulgarian National Bank (BNB). In parallel with the growth in lending in both sectors, overdue debts have also increased on an annual and quarterly basis. There is an increase in both value and share of overdue obligations as part of the entire portfolio for non-bank credits. NPL in the lease sector grows as a value, but the share of overdue of all granted loans decreases on a quarterly basis and increases slightly on an annual basis.

For comparison – at the end of March 2025, non-bank loans amounted to nearly BGN 6.817 billion (EUR 3.5 bln), with a 20.5% year-on-year increase. During this time, non-performing loans increased by more than a quarter, and their share in the total portfolio is 7.77%, which is 0.36 percentage points higher than in March last year. For the first time, the value of overdue quick loans exceeded half a billion BGN.

More than half of all granted loans are due over five years. Interestingly, compared to December 2024, there has been a decrease in short-term loans – those with a term up to one year. This is partly understandable given purchases of goods on installments during December and the use of non-bank loans for holiday expenses. However, last year there was no such reduction in loans with the shortest maturity; at the beginning of 2024, those with a repayment period of one to five years decreased.

 

The BNB data on non-bank lending includes classic “quick” loans for people with limited access to bank credits, as well as consumer loans, provided by bank’s groups with interest rates significantly lower than those of quick loans. These also include installment loans used for purchasing equipment, furniture, as well as companies that lend to businesses. The BNB does not provide a breakdown by individual segments, where the risk profile of clients is very different.

In financial leasing, the trend of decreasing the share of non-performing receivables was interrupted after their increase at the end of last year (see the chart), but although minimal, they again decreased to 1.77% in March. As a value, they have been growing continuously for a whole year, in parallel with increased lending. Financial leasing is a major part of the leasing market in Bulgaria – only 5.6% is operational. Non-performing receivables are not reported for it due to its specifics – using an asset (machines, equipment) for a certain period.

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