Bulgarian non-banking firms giving quick loans to businesses and individuals saw their portfolios dwindle 11.5% in the first quarter as the global economic deterioration weakened both lending activity and borrowers’ appetite, showed central bank data at March 31, 2009.

Bad credits amounted to BGN 238.9 million in the first quarter and more than doubled their share to 9.6% from 4.2% in end-2008. Receivables of non-banking lenders added up to BGN 2.493 billion at the end of March, down 11.5% on the quarter but up 7.2% on the year. Payment deferrals prevailed in the leasing market as well where they surged more than fivefold to over 8.5% of all receivables and made 3.6% of the banking sector.

The first quarter saw a contraction in loan repayment periods, with the portion of credits for over five years shrinking to 54.6% from 60% over the quarter. Their amount reached 1.361 billion at the end of March, down by 20.2% from end-2008 and shedding only 2.4% on the year.

Consumer credits accounted for 85.3% of non-banking lenders' portfolio and reached 2.126 billion at end-March, down 11.3% on the quarter, as corporate loans shrank 12.9% to BGN 352.1 million.