Bad household loans catch up with corporate loans

The volume of bad loans for individuals and households almost touched corporate loans in end-July 2008 although individuals took some 11 bln levs less, central bank data showed. Bad consumer, mortgage and other loans of individuals added up to 468.5 mln levs. Bad corporate loans totaled 493.6 mln levs. Companies drew 28.5 bln levs worth of loans. Households and individuals borrowed a combined 16.9 bln levs. Banks’ retail loan portfolios grew as fast as bad and restructured loans. Bad consumer loans picked up 44.8 pct year-on-year as the whole consumer portfolio expanded by 47 pct year-on-year. Bad housing mortgage loans grew 48.9 pct and the whole portfolio added 50 pct. The close paces are due to the smaller growth rate of new loans, bankers commented. Bad and restructured loans combined soared by 282 mln levs to 962.1 mln levs for a year making 2.11 pct of the total portfolio. The combined profit of Bulgarian lenders surged 38.2 pct to 842 mln levs from January to July. Source: http://news.dnevnik.bg/

Assets of Bulgarian REITs Up by 67% in One Year

The assets of Bulgarian real estate investment trusts (REIT) amounted to 1.54 bln leva as at the end of the second quarter of 2008, up by 67.3% year on year, data of the Financial Supervision Commission (FSC) show. It should be taken into consideration that a total of 68 REITs were included in FSC's statistical data for 2008, compared to 47 a year earlier.The combined assets of REIT's rose by 7.68% in the second quarter of 2008, compared to the first three months of the year. The REIT's managed 1.43 bln leva assets as at the end of March 2008.A total 56 of the REITs invest in real estate properties other than arable land. They managed assets for 925.78 mln leva as at the end of June 2008.Their assets amounted to 512.22 mln leva a year earlier and stood at 857.93 mln leva as at the end of the first quarter of 2008.FairPlay Properties REIT (114.13 mln leva), Serdika Properties REIT (80.69 mln leva) and Arco Twoers REIT (80.53 mln leva) are the three biggest companies in terms of assets. The last two, however, are not traded on the Bulgarian Stock Exchange (BSE).The six REITs specializing in the securitization of arable land managed assets for 532.4 mln leva as at the end of the first half of 2008.The assets of the six REITs stood at 300.41 mln leva a year earlier and at 482.52 mln leva as at the end of March 2008.The three biggest funds in terms of assets in this group are Bulgarian Real Estate Fund REIT (183.43 mln leva), Elana Agricultural Land Opportunity Fund (153.56 mln leva) and Advance Terrafund REIT (102.35 mln leva).The REIT specializing in the securitization of receivables rank third. Their number has increased from 7 to 9 in one year, while the value of their assets has gone down from 95.38 mln leva as at the end of June 2007 to 77.36 mln leva a year later. The assets of these REIT's totaled 85.6 mln leva in the first quarter of 2008.The top three REIT's in this group in terms of assets are Capital Management REIT (48.36 mln leva), Transinvestment REIT (15.33 mln leva) и Energetics & Energy Savings Fund SPV-Sofia (7.28 mln leva).Source: Profit.bg

Brokers: Market To Start Picking Up Slowly

As usual Profit.bg asked on Monday three market experts to share their expectations about the trade on the Bulgarian Stock Exchange (BSE) this week. Here is what they had to say: Vesselin Morov, broker, Naba Investments The optimism that swept through the market in the beginning of May is indicative of the lack of a clear trend – in the search of new lows for the indexes and the establishment of a short-term intensive positive trend. I expect the trend to continue this week, while the market sentiment will be influenced mainly by the positive data from the consolidated first quarter reports of the holding companies. Nevertheless, we have to bear in mind that the market is still far away from a change in the medium-term sentiments of the market participants. We are witnessing a rather speculative trade in thin volumes. Nikolay Vitleemov, broker, Varchev Finance After seeing the first weekly gains of the stock indexes ranging between 5 and 5.5% and an increase in the average daily trading volumes last week we could expect the first attempts for bigger growth. The optimism on most positions is growing. As a result the total market capitalization of the companies listed on BSE reached 23.71 bln leva at the end of last week. Infrastructure companies may once again get in the spotlight this week. Positive news on the construction of the Trakia motorway may spark new stock price hikes, after the companies in the sector gained 20% last week. Chimimport will also be closely watched by investors after advancing by 4.54% last week. Ognyan Dechev, executive director, Populiarna Kasa - 95 The market will most likely continue to pick up slowly this week. The current stock price levels are similar to those of year and half, two years ago and are very favorable for buyers. The infrastructure projects and the positive financial results of many companies will support the rise of the capital market, but all this will happen slowly and with periods of consolidation. I am optimistic about the development of the market in the medium term and the long term. Furthermore, there are signs of recovery on the global capital markets after the turmoil. The article is not a recommendation for buying or selling stock.