Bulgaria Banking System Is Stable - Report

There is no data to show that Bulgaria is in recession, DSK's CEO, Violina Marinova, said. Photo by gettyimages

The Bulgarian banking system is stable, liquid and profitable, and banks have enough provisions against defaulting loans.

This statement was made by Violina Marinova, the chairperson of the managing board of the Association of Banks in Bulgaria and CEO of DSK Bank, in an interview for the Bulgarian Information Agency (BTA).

Marinova commented on the announcement made by the rating agency Moody's that there was a possibility for downgrade in the ratings of the Bulgarian banks, DSK and First Investment Bank.

"At the moment the Bulgarian banks in general and DSK Bank in particular are stable and we have nothing to worry about," Marinova told BTA.

In her words, Moody's review of the two banks' ratings will last three months and a rating action is not expected before that.

Defaulting loans make up 8,2% for the whole banking system, which is a reasonable level, Marinova commented.

She added that there was no data to show that Bulgaria is in recession.

 

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