The Bulgarian banking system is stable, despite the increase of bad credits, local press reported on Sunday, citing Ivan Iskrov, the governor of Bulgaria's Central Bank (BNB).
"In the first three months of 2009 the banks in Bulgaria increased their capital, due to their good work," Iskrov said on Saturday.
Nevertheless, the rate of bad credits is growing, which is common occurrence in the state of a declining economy.
"If I could say when the global financial crisis would be over, I would be awarded a Nobel Prize," Iskrov said while answering a journalist's question.
A month ahead of the general elections, Bulgaria's parliament reelected on Thursday Ivan Iskrov for another six-year term as the BNB governor.
The new mandate will be effective as of Oct. 10, the deputies voted.
Iskrov is known as a staunch supporter of Bulgaria's currency board agreement, which pegs the lev to the euro. Currently all political parties in the country are strongly in favor of keeping the agreement in place until Bulgaria joins the eurozone.
During his six years in office, Iskrov has also used monetary policy to keep the lending boom manageable, with mixed success.
Source: Xinhua
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