Bulgarian Legal, Natural Persons with Debts of BGN 15 B by end-2012

Debts of Bulgarian legal and natural persons for collection by bailiffs and debt collection agencies amounted to over BGN 15 B by end-2012.

The total amount of debts registered a dramatic spike, up from BGN 2.5 B in 2010, according to reports of Standard daily.

At present, a total of only BGN 1.1 B has been collected.

Natural persons mostly owe money to mobile operators, heating utilities and power distributors, as well as banks.

At the same time, the business sector is plagued by inter-company indebtedness and most of the companies are at the same time creditors and debtors.

To be able to pay their debts, firms turn to new creditors for fresh sums of money, thereby getting into even more debt.

Bailiffs report nearly 215 000 lawsuits against debtors, 55 000 of them have ended, but there is an upward trend in 2013.

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