Credit cycle in Bulgaria


  • Kamelia Assenova PhD Associate Professfor, University of Ruse, Sofia NBU and UNWE, Sofia



Banking, credit, supply and demand of credit


The banks play a special role in the financial system. Some economic subjects have less access to other forms of funding than to banks. By the special bank’s role for part of the borrowers, credit growth changes the investment and the
consumption and stimulates economic growth in the country. During the crisis in 2008 in Bulgaria characterizes with: a gradual decline of the lending rate in 2008 from 24.38% in the first quarter to 2.27% in the fourth quarter for business and lower for household loan to 5.79% at the end of 2009. For the period 2010-2015, households’ trends are also descending, but with lower fluctuations - from - 0.81% at the end of 2010 to - 1.79% at the end of June 2015.
Different factors related to the supply and demand of credit influence of their amount. Higher domestic consumption and investment depends on the lending and therefore it could be actively used as an instrument for stimulating of economic growth.






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