2024-08-17 13:15:55
The average amount of quick loans granted has increased in the last few years, mainly due to high inflation, reaching BGN 1,200, said the chairman of the Association for Responsible Non-Bank Lending (AONC) Nikolay Tsvetanov in an interview with BTA. He pointed out that the market of non-bank loans so far has not recorded growth in the number of loans.
On Friday, the Bulgarian National Bank (BNB) reported that as of the end of June 2024, loans from fast credit companies amounted to BGN 6.017 billion (3.1 percent of the estimated gross domestic product). In one year, they increased by 22.1 percent – from BGN 4.926 billion in mid-2023 (2.7 percent of GDP). The relative share of these credits in the total amount of credit claims increased from 45.2 percent at the end of June 2023 to 46.7 percent at the end of the same month of 2024, according to BNB data.
A few days ago, the Association warned of an increasing number of credit frauds, and Tsvetanov pointed out that users should be extremely careful in social networks, which are a dangerous place to look for consumer financing.
“Non-bank lending has established itself as a convenient, accessible and trusted alternative to bank loans. We expect this trend to continue, and unscrupulous market participants to gradually and naturally drop out through regulation by the competent authorities and rejection by consumers,” he pointed out.
According to him, it is possible to think about changes in the sector related to Bulgaria’s entry into the Eurozone, which will, however, affect companies rather than consumers.
In all cases, a smooth transition to the new currency must be guaranteed and implemented. In this interim period, the regulators should watch closely for abuses to prevent them as much as possible, Tsvetanov said.