site.btaLess and Less Bulgarians Become Debtors But Size of Debt Grows

Less and Less Bulgarians Become Debtors But Size of Debt Grows

Sofia, March 14 (BTA) - Less and less number of Bulgarians draw debts but the size of the obligations grow, Raina Mitkova, Chairperson of the Association of Debt Collection Agencies in Bulgaria, told a BTA-hosted news conference on Tuesday. The falling number of debtors is attributed to the improving economic situation in this country. This also means that people buy more goods and take out more loans.

The average debt has grown by 22 per cent to about 912 leva. Overall, the volume of debts assigned to collection companies decreases.

Statistics also shows a falling volume of bad debts and lower levels of lending.

The most frequent loans are for mobile phone handsets and laptops. The most frequent debtor is a person below 30 years.

Stara Zagora, South Central Bulgaria, and Blagoevgrad, Western Bulgaria, are the cities with the highest number of debtors. At the other opposite are Vratsa, Northwestern Bulgaria, and Rousse, Northeastern Bulgaria.

Debt collectors note that January and February are traditionally difficult months for servicing debts. People feel insecure on account of the political situation. Some prefer to put money aside instead of servicing their obligations.

The debt collecting agencies warn about a new balloon with prices in greenfield construction.