Bulgaria's Non-Government Deposits Rise 11.8% Year-on-Year in August, Reaching BGN 148.6 Billion

Significant Growth in Non-Government Deposits

Non-government sector deposits in Bulgaria experienced a substantial increase of 11.8% year-on-year in August 2025, reaching a total of approximately 148.6 billion levs (BGN 148.579 billion). This data was reported by the Bulgarian National Bank (BNB) on September 23, 2025, and follows a 10.8% annual growth recorded in July 2025. The total deposits at the end of August were equivalent to 67.7% of Bulgaria's projected Gross Domestic Product (GDP) for 2025.

Detailed Breakdown of Deposit Categories

The growth was observed across various segments of the non-government sector:

• Household deposits, including those from non-profit institutions serving households (NPISHs), saw a significant rise of 12.7% year-on-year. These deposits amounted to 95.4 billion levs (BGN 95.417 billion), representing 43.5% of the country's GDP.
• Deposits held by non-financial corporations reached 49.2 billion levs (BGN 49.173 billion), marking a 9.9% increase compared to August 2024. This category accounted for 22.4% of GDP.
• Financial corporations' deposits also contributed to the overall growth, increasing by 13.9% year-on-year to just under 4 billion levs (BGN 3.989 billion), or 1.8% of GDP.

Eurozone Accession as a Key Driver

A primary factor contributing to the accelerated growth in deposits is Bulgaria's impending accession to the euro area, scheduled for January 1, 2026. The prospect of adopting the euro has encouraged citizens and businesses to formalize their financial holdings. The Association of Banks in Bulgaria had previously appealed to the public to deposit unbanked cash into banks ahead of the country joining the euro. Furthermore, major Bulgarian banks have been offering free cash deposit services, with some promotions extending until September 30, 2025, to facilitate this transition.

Economic Implications and Future Outlook

The consistent increase in non-government deposits highlights a growing confidence within the Bulgarian financial system, potentially influenced by the stability associated with eurozone membership. The substantial volume of deposits, representing a significant portion of the national GDP, underscores the importance of these financial flows to the country's economic health. As Bulgaria prepares for its transition to the euro, the banking sector continues to play a crucial role in integrating the national economy with the broader European financial landscape.