Since September, corporate deposits have grown more slowly on an annual basis, down one-digit pace. This is a positive fact and a signal for improved financial management and an improved investment process for companies in the real economy. This is written in the monthly economic survey of a leading bank in Bulgaria, commenting on the data available as of January 2019, focusing on the money and banking sectors.
The Economic Analyst of
a leading bank in Bulgaria estimated that savings in the banking system grew by 7.4% yoy in December, with household deposits increasing by 8.5% and those of businesses by 5.1%.
He notes that the BNB’s monetary statistics reported annual growth of loans of 7.5% at the end of December, driven by an increase in loans to households by 11.2% and loans to businesses by 5.2%.
Positive is the fact that lending marks annual growth for the twenty-seventh consecutive month, calculated in the bank.
“At the end of December, the relative share of bad and restructured loans (excluding overdrafts) declined by 2 percentage points. compared to their level at the end of 2017, reaching 14.4%, which is still a relatively high level. We expect the gradual decline in the share of bad and restructured loans to continue in the first half of this year. “