2009 was very difficult in view of the challenges and convulsions, Petar Andronov, CEO of EIBank /part of th KBC Group/ said in an interview with the Pari daily. The crisis influenced strongly the dynamics of interest rates and the quality of portfolios. But the end of the year brings satisfaction. Economy will return to reality in 2010.
Compared to the years of growth 2009 was bad, but in view of current events in other countries the situation in Bulgaria is significantly better. The first half of 2009 was affected by the global lack of liquidity. This reflected upon the profitability of deposits and led to a “deposit war”. For the second half the quality of credit portfolios was of key importance. In 2010 the process of recuperation from the crisis will begin, as the bottom will be hit. The trend will turn, but for Bulgaria this will not be easy, Andronov commented.
The current conditions determine the downward trend of deposit interests next year. Following a period of accumulation this will reflect upon the cost of credits and the growth of the total credit portfolio. Andronov expects that slowly, economy will return to reality.
The banks, the government and business must put a lot of effort to guarantee sustainable, positive development, he added. According to him parent institutions will have a more optimistic attitude.
Tags: economy recovery, Economy Situation, financial crisis 2009, Great Depression 2009
