Croatia’s share indices extend gains thanks to Podravka, Adris
Ljubljana share indices end week up, Telekom Slovenije leads gainers
Most Sofia bourse indices fall, Fibank paces blue-chip losers
UPDATE 1 - Bulgarian regulator okays 6.5% hike in Dec natgas price
Zarneni Hrani Bulgaria boosts 9-mo cons net profit, revenue falls
Sep 26, 2023 17:53 EEST
September 26 (SeeNews) - Bulgaria's central bank said on Tuesday it decided to retain the countercyclical capital buffer rate applicable to credit risk exposures in the country at 2.0% in the fourth quarter of 2024, with the aim of mitigating a potential rise in non-performing loans and impairments.
In light of volatile energy prices, supply chain disruption risks and the expected slowdown in foreign demand, lenders' debt servicing capacity could weaken, at the same time as recent credit activity remains elevated, in particular in household loans, and interest rates are set to rise further with monetary policy tightening, the Bulgarian National Bank (BNB) said in a press release.
"Therefore, credit institutions should adhere to conservative policies with regard to lending, apply timely and adequate provisioning, and plan their capital trajectories taking into account the likelihood of an aggravation of risks or a potential emergence of additional unfavourable developments in the economic outlook," the central bank said.
The countercyclical capital buffer rate in Bulgaria was raised to 2.0% in September last year, with effect from October 1, 2023. It has been affirmed at this rate in every consecutive quarter since last autumn.
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options