Bulgarian banks enjoy rising profits

There was good news for investors and owners of property in Bulgaria as the country showed signs of resisting the major effects of the global credit crunch.

Despite lenders across the globe suffering heavy losses, Bulgarian banks reported considerable profits and stable growth, the Sofia Echo reports.

Two-thirds of local banks recorded increased profits between January and September of this year compared to the same period in 2007, with Piraeus Bank Bulgaria enjoying a 117.3 per cent gain.

Lenders were warned by the central bank to retain their profits in order to cushion themselves against the potential effects of constrained market conditions, meaning the banks are better placed than many in the world to combat the financial downturn.

The paper also reported on Wednesday that year-on-year inflation in the country had fallen in spite of the economic slowdown.

Down to 10.9 per cent in October, the figure represents a fourth straight month of falling inflation.