When doing business in anywhere it is important to know the trading practices and common mentality. That is why we think it is important to share some information about the liabilities of the companies in Bulgaria.
The total liabilities of the companies in Bulgaria at the end of 2010 are estimated at 157 billion BGN which is almost 3 times the GDP for 2009 (est. at 66 billion BGN). The biggest generator of liabilities is the in-between companies liabilities estimated at 104 billion BNG or 80 % of the overall debt.
The single leading generator of debt is the Government is self which owns to the companies more than 2.4 billion BGN. Second position is reserved for the municipalities with more than 800 million BGN debts.
The liabilities of the companies towards the bank are increasing with more than 1.5 billion BGN, toward the employees with 141 million BGN more. Tax liabilities are less with 1 % and are total 3.8 billion BGN.
As summary we would advise if you do business in Bulgaria and if possible to require receiving full all receivables before handling goods or rendering services.
Note: x-rate 1 EUR = 1.95585 BGN