Foreign banks cut financing in Bulgarian subsidiaries

In the second quarter of 2012 the Western European banks continued to cut the finances for their Bulgarian subsidiaries, shows a research of the European Investment Bank.

Between October 2011 and July 2012 the foreign subsidies amounted to EUR 2.5 billion, which is 6.5%-7% of the total Gross Domestic Product (GDP) of Bulgaria. The slight increase in the funds coming to the Bulgarian banks remained in the past.

The data shows that between the 3rd quarter of 2011 and the 2nd trimester of 2012 the foreign money in Bulgarian banks has gone down by 5% and the deposits of the Bulgarian households and companies in them have grown by 6%.

Adapted from Bulgarian National Radio