Tuesday, June 18, 2024

Bulgaria: Market overview


Drawing energy from the EU

Bulgaria is dwelling to a inhabitants of virtually 7 million individuals. With a GDP per capita of USD $11 730, Bulgaria is taken into account a growing nation with an upper-middle-income economic system.1

Most of its commerce takes place with different EU member states, dealing in uncooked and refined treasured metals. Its fundamental export accomplice is Germany (valued at over €6 billion), adopted by Romania and Italy.2 As of 2007, Bulgaria is formally a member of the European Union. Becoming a member of the EU has introduced a number of advantages to Bulgaria’s economic system, most notably, entry to a big and well-functioning single market. Different advantages embrace a rise in international direct investments and entry to funding and help.3

Naturally, Bulgaria was additionally impacted by the financial disaster that rocked the world in early 2022. Regardless of the instability and excessive inflation, Bulgaria’s actual GDP is forecasted to extend by 1.4% in 2023 and by 2.5% in 2024.4 These forecasted numbers are reflective of Bulgaria’s potential for stability and suppleness in instances of financial crises, and the nation’s vulnerability to exterior shocks.

Fintech: A booming sector in Bulgaria

One business that has been positively impacted by Bulgaria’s EU membership is the fintech sector. The nation boasts a thriving startup ecosystem, a positive regulatory setting, and a extremely productive workforce, making it a great vacation spot for fintech firms to determine their presence.5

A necessity for contactless options pushed by the COVID-19 pandemic led to the rise of cellular banking, on-line funds, and digital wallets, inflicting a surge in fintech startups. By 2021, the full income earned by fintech reached a price of virtually €1 billion. Within the final 5 years, the fintech business has seen a median development charge of 17% in complete belongings owned.6

Digital funds have lengthy dominated the monetary sector. Nonetheless, various lending is shortly cementing its place as a useful addition to the non-banking sector, accounting for 9% of general fintech working income within the nation.7

A quickly rising mortgage portfolio

At present, there are 177 non-banking monetary establishments with a presence in Bulgaria. By the top of 2022, loans granted by various lending firms reached €2.2 billion, rising by over €300 million year-on-year. Development is most obvious within the quick loans sector: Within the final three years, lending firms from the sector reported a complete revenue of virtually €600 million.8

In Bulgaria’s various lending scene, a key participant to look at on Mintos is CashCredit, with a well-established mortgage portfolio in Bulgaria– at €6 million.9

Lending exercise within the various lending sector in Bulgaria has seen vital development in recent times, with €8 million investments made in Notes and claims on Mintos in 2022 alone. With an rising variety of people and companies in search of various sources of funding, the choice lending market in Bulgaria has the potential to turn out to be a key contributor to the nation’s economic system.

For those who’re fascinated with discovering out extra about how one can make investments with Mintos, discover Bulgaria’s main lending firms.

1 The World Financial institution in Bulgaria, The World Financial institution (Accessed March 2023)

2 Bulgaria (BGR) Exports, Imports, and Commerce Companions, The Observatory of Financial Complexity (Accessed March 2023)

3 The World Financial institution in Bulgaria, The World Financial institution (Accessed March 2023)

4 Financial forecast for Bulgaria, European Fee (Accessed March 2023)

5 Annual Fintech Report, Bulgarian Fintech Affiliation (Accessed March 2023)

6 ibid.

7 ibid.

8 Компаниите за бързи кредити с рекордна печалба за 2022 г., Darik Enterprise Overview (Accessed March 2023)

9 The figures represented discuss with the lending firm’s mortgage portfolio on Mintos, minus provisions.

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