Bulgarians Should Save Money for at least 6 Months of Life, Experts Recommend

The number of non-performing loans in Bulgaria since the beginning of the year remains similar compared to 2020 and even slightly decreases. The general levels of payment for consumers are also relatively stable, according to data from the Receivables Management Association on the trends in the receivables market from the beginning of 2021. This, against the background of the unstable economic situation and negative forecasts, paints a seemingly optimistic picture. According to experts, however, it is only apparent.

According to the Association of Commercial Banks, the volume of non-performing loans in Bulgaria at the end of June was BGN 3.273 billion, with a minimal decrease compared to March. Loans for just over BGN 9.4 billion have been deferred in accordance with the procedure set for clients in difficulty due to COVID-19. The share of non-performing loans is 4.58% of all. "We are seeing an increased risk of people between the ages of 40 and 50, who are traditionally the most conscientious payers. These people have more sustainable incomes, often take care of both their children and elderly relatives, have the most responsible behavior and they are the backbone of the economy. However, it is with them that the first signals of difficulties in covering the monthly installments are felt," said Raina Mitkova, chairwoman of the association, quoted in a press release.

According to the organization, changes in people between the ages of 40 and 50 do not affect overall pay levels, as at this stage the decline is offset by other age groups. But the phenomenon is indicative of what is happening now.

"It is not yet possible to identify clear reasons for the fluctuations in the most resilient group. Most of these...