Day in 3 news: Credit market grows by 500 mln levs in June; Stadler Polska quits train deal; EU Commission takes Bulgaria to court over 3 directives

Капитал Градове Стара Загора и Казанлък. Ремонт, реконструкция на ЖП гара в Нова Загора

Day in 3 news: Credit market grows by 500 mln levs in June; Stadler Polska quits train deal; EU Commission takes Bulgaria to court over 3 directives

Капитал Градове Стара Загора и Казанлък. Ремонт, реконструкция на ЖП гара в Нова Загора

© Цветелина Белутова


Credit market boom

The credit market boom in Bulgaria continued in June. In over a month, banks' mortgage loan portfolios expanded by over half a billion levs (250 million euro). The volume of additional financing provided by banks to businesses also expanded in June.

By the end of the first half of 2024, total lending growth rate reached 13.24% on an annual comparison basis, almost touching the level of 13.43% reached in the summer of 2022, which was the highest value of the indicator since 2009.

Unlike corporate and consumer loans in which portfolio growth rates slowed slightly from 2022 before picking up again in late 2023, the cooling was not felt in mortgage lending despite the BNB's attempts to put a brake on it by increasing the banks' minimum reserves requirements.

Stadler Polska to procure no trains to Bulgaria

Polish train manufacturer Stadler Polska, selected by the Bulgarian transport ministry to deliver 35 multiple-unit trains, is withdrawing from the procurement procedure. It also demanded that its contract for the delivery of seven double-decker trains be terminated. This was officially announced by the department responsible for the purchase of new rolling stock under the National Recovery and Resilience Plan, according to which nearly 3 billion levs (1.5 billion euro) were to be spent to buy new trains.

Thus, in two of the three big procurement procedures opened by the ministry, no trains will be delivered. The contract with Stadler Polska for the delivery of seven double-decker trains was signed in April.

EU with triple action against Bulgaria

The European Commission announced on Thursday that it has decided to take Bulgaria to the EU Court of Justice for non-compliance with European legislation.

The cases refer to the limitation of the right to therapy and other social services up to six months within a year, as well as to Bulgaria's failure to correctly transpose in national law European rules for people with disabilities and for the information that accused and suspects in criminal cases can receive.

The lawsuits are the latest stage of legal action against Bulgaria over the country's failure to respond adequately to the European Commission's insistence to comply with its obligation to implement European legislation.

Credit market boom

The credit market boom in Bulgaria continued in June. In over a month, banks' mortgage loan portfolios expanded by over half a billion levs (250 million euro). The volume of additional financing provided by banks to businesses also expanded in June.

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