Majority of Bulgarians Wary of Bank Loans - Poll

Bulgarians are cagey about bank loans, a recent poll shows, file photo

Over 58% of all Bulgarians would never take a bank loan regardless of its terms, according to a recent study.

The poll has been conducted by the Institute for Economic Research at the Bulgarian Academy of Sciences (BAS) among 1 000 Bulgarians of voting age between August 1 and September 10, 2013.

Up to 75% of the respondents have said bank interest ratees and fees are too high, while 84% state at the same time that they can no longer slate money for savings.

The share of default loans of Bulgarian households is 19-20% in 2013, compared to just 5-6% in 2009.

30% of the "bad loans" are in Sofia and 42% - in regional cities.

The overall trend is for Bulgarians to delay consumer expenses; try to save as much as they can; repay old debt, and steer away from new loans, which makes bank crediting a shrinking factor for economic growth, according to experts.

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