"The share of bad credits in Bulgaria may soar to 16.5% at the end of the year, which means that every sixth bank loan will become unserviced, the national bank has warned in a report on the banking sector. This nightmarish forecast may come true if GDP falls by seven percent this year and by another 2.5% next year. The budget for next year provides 6.3% drop in the country's GDP by the end of the year and by another two percent next year. The share of unserviced loans increased by as much as 140 pct y/y in the period April-June 2009. Despite the deteriorating quality of the bank loans, the tendency started in the last trimester of 2008, the banking system in Bulgaria is relatively stable".
We are experiencing the first signs of positive and active behavior from the companies in the market. They are starting to ask us to resolve their problems, which is a good sign. Indeed looking for solutions proactively happens in the fourth phase of a crisis. I read about this model a long time ago. I could see it happen in practice in Bulgaria this time. It took about 12 months for the problems to be recognised and worked upon. Let us hope that it is not too late.
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