Bulgaria’s banks will end 2009 with 700 million leva profit – Iskrov

   Bulgaria’s banks will end 2009 with a combined profit of 700 million leva,

central Bulgarian National Bank Governor Ivan Iskrov said.
 
This was about half the figure for 2008, Iskrov told journalists on December 23 2009.
 
Non-performing bank loans would reach about six per cent at the end of 2009, but banks were sufficiently well-capitalised to cope with this, Iskrov said.
 
Thanks to banking system regulations implemented in 2003, Bulgaria’s banking system had sufficient "shock absorbers" to meet the challenges.
 
In spite of higher interest rates, banks had still achieved profits, he said. These profits would be capitalised, which would strengthen the system, Iskrov said.
 
By October 2009, Bulgaria’s banks had profit of 656.5 million leva, which was 46 per cent less than in the first 10 months of last year.
 
Asked when Bulgaria would apply for membership of the ERM-2, the entrance hallway to accession to the euro zone, Iskrov said that BNB was working with Bulgaria’s Cabinet and the country would apply for ERM-2 status at the earliest possible moment.

                      Source:  sofiaecho.com