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Crisis hits non-banking lenders

Bulgarian non-banking firms giving quick loans to businesses and individuals saw their portfolios dwindle 11.5% in the first quarter as the global economic deterioration weakened both lending activity and borrowers& rsquo; appetite, showed central bank data at March 31, 2009. Bad credits amounted to BGN 238.9 million in the first quarter and more than doubled their share to 9.6% from 4.2% in end-2008. Receivables of non-banking lenders added up to BGN 2.493 billion at the end of March, down 11.5% on the quarter but up 7.2% on the year. Payment deferrals prevailed in the leasing market as well where they surged more than fivefold to over 8.5% of all receivables and made 3.6% of the banking sector. The first quarter saw a contraction in loan repayment periods, with the portion of credits for over five years shrinking to 54.6% from 60% over the quarter. Their amount reached 1.361 billion at the end of March, down by 20.2% from end-2008 and shedding only 2.4% on the year. Consumer credits a...