Greece’s Crisis May Hit Bulgaria

The raging financial crisis in Greece may cause the interest rates on consumer and corporate loans in Bulgaria to hike. As the bailout debate between Athens and Brussels have reached a standstill, Greek banks operating abroad may set higher interests on their loans so as to pump some fresh capital back to the struggling mother companies.

This forecast was made by the Bulgarian President Elect Rossen Plevneliev in an interview with BTV. In his words, the Bulgarian households and companies had borrowed a total of 26 billion euros and a possible increase of the interest rates could trigger a wave of bankruptcies in Bulgaria.

Such an increase in the interest rate on bank loans is quite likely, having in mind that the international markets are extremely volatile and sensitive to any news of instability.

“We shall not allow the Greek mother banks to pull too much capital from their subsidiaries in Bulgaria”, experts of the Bulgarian National Bank have said.


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