Икономиката на България и Европейския съюз: 20 години от подписването на договора за присъединяване на Република България към Европейския съюз и членство в еврозоната от 01.01.2026 г. : Сборник с доклади. Ч. 2

Икономиката на България и Европейския съюз: 20 години от подписването на договора за присъединяване на Република България към Европейския съюз и членство в еврозоната от 01.01.2026 г. : Сборник с доклади. Ч. 2
The Economy of Bulgaria and the European Union: 20 Years since the Signing of the Treaty on the Accession of the Republic of Bulgaria to the European Union and Membership in the Euro Area from 01.01.2026 : Conference Proceedings. Pt. 2

Contributor(s): Silvia Trifonova (Composer), Tetiana Hudz (Editor), Yevhen Namliev (Editor), Liudmyla Golokova (Editor), Oleksandr Balan (Editor), Lyudmyla Shymanovska-Dianych (Editor), Elizabeta Tomevska-Ilievska (Editor), Bogomil Manov (Editor), Margarita Aleksandrova-Borisova (Editor), Snejana Bacheva (Editor), Roumiana Pozharevska (Editor), Todor Nedev (Editor), Nikolai Shterev (Editor), Lena Roussenova (Editor), Ivan Todorov (Editor), Vladimir Tsenkov (Editor), Tanya Vazova (Editor), Petya Biolcheva (Editor), Emil Kalchev (Editor)
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, National Economy, Business Economy / Management, Governance, Sociology, Economic policy, Evaluation research, Economic development, EU-Approach / EU-Accession / EU-Development, Financial Markets, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: challenges; conflicts; solutions; inflation; fiscal consolidation; sustainable development; monetary policy; fiscal policy; central banks; economic growth; economic stability; international trade; economic integration; risk management
Summary/Abstract: The economy of Bulgaria and the European union: 20 years since the signing of the treaty on the accession of the Republic of Bulgaria to the European union and membership in the euro area from 01.01.2026 : conference proceedings of XX international scientific conference of young scientists. Part 2 The 20th International Scientific Conference of Young Scientists on “The Economy of Bulgaria and the European Union: 20 years since the signing of the Treaty on the accession of the Republic of Bulgaria to the European Union and membership in the euro area from 1.01.2026” was held on 6-7 November, 2025 at the University of National and World Economy (UNWE), Sofia, Bulgaria. The Finance and Accounting Faculty at the UNWE, Sofia, organizes the conference under the patronage of the Rector of UNWE Prof. Dimitar Dimitrov, PhD. The co-organizers of the conference are the following leading universities and organizations: Faculty of Economics and Business Administration, Sofia University “St. Kliment Ohridski”, Sofia, Bulgaria; University of Insurance and Finance, Sofia, Bulgaria; Faculty of Economics at South-West University “Neofit Rilski”, Blagoevgrad, Bulgaria; New Bulgarian University (NBU), Sofia, Bulgaria; Union of Economists in Bulgaria (UEB), Sofia, Bulgaria; Student Council at UNWE, Sofia, Bulgaria; Association of lecturers in Economics and Management in the Industry, Sofia, Bulgaria; University of Bologna – Alma Mater Studiorum Universita di Bologna-Sede di Rimini, Italy; University of Split, Faculty of Economics, Business and Tourism, Split, Croatia; Poltava University of Economics and Trade (PUET), Poltava, Ukraine; Lutsk National Technical University (LNTU), Lutsk, Ukraine; University of Rijeka, Faculty of Economics and Business, Rijeka, Croatia; Ss. Cyril and Methodius University in Skopje, Skopje, Republic of North Macedonia. The aim of the international conference is for young scientists – doctoral candidates, teachers, early stage researchers, as well as students, to present their scientific research to the academic community and discuss economic problems with Bulgarian and foreign scientists. Part II of the conference proceedings includes papers by Bulgarian and foreign students studying at bachelor’s and master’s degrees. This scientific forum is being held for the 20th time in a row, as the published scientific results from the previous scientific conferences prove the significant potential for the future professional development of young scientists and students. The format and organization of the scientific event are aimed at creating an academic atmosphere conducive to dialogue and exchange of ideas between the different levels of the academic community and business representatives. The conference is financed by a university scientific project for a scientific event at the UNWE, Sofia, under contract № NID NF-1/2025/B.

E-ISBN-13: 978-619-232-994-5
Page Count: 529
Publication Year: 2026
Language: English, Bulgarian

Credit Risk Management in Ibercaja

Credit Risk Management in Ibercaja
(Credit Risk Management in Ibercaja)

Author(s):Ana Solchaga
Language:English
Subject(s):Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:39-47
No. of Pages:9
Keywords:Ibercaja Banco; credit risk; management
Summary/Abstract:This study provides a comprehensive analysis of the credit risk management framework of Ibercaja Banco, a medium-sized Spanish bank known for its conservative risk culture and high asset-quality metrics. The research explores the fundamental concepts and categories of credit risk, along with the regulatory architecture shaped by Basel III/IV and its implementation in the European Union through the CRR and CRD IV. It also examines the supervisory role of both the European Central Bank (ECB) and the Bank of Spain within the Single Supervisory Mechanism. Particular attention is given to Ibercaja’s internal governance structure—anchored in its Risk Appetite Framework (RAF) and the three-lines-of-defense model—and to its prudent lending standards, characterized by strict admission criteria, conservative LTV limits, and concentration controls. The study further assesses Ibercaja’s credit risk measurement practices, including the use of PD, LGD, and EAD parameters, and evaluates its main mitigation strategies such as collateralization, guarantees, and portfolio diversification. Monitoring and early-warning systems, stress testing, and IFRS 9 provisioning models are presented as key tools supporting risk identification and resilience. Performance indicators—including a 1.7% NPL ratio, 0.4% cost of risk, and 65% coverage ratio—highlight the bank’s consistently strong credit profile relative to the Spanish banking sector. Overall, the findings show that Ibercaja’s solid governance, disciplined underwriting, and forward-looking risk management have enabled the institution to sustain a robust solvency position and maintain stability under an increasingly demanding regulatory environment.

Влиянието на пандемията от COVID-19 върху дигитализацията и растежа на българските предприятия (2020-2025)

Влиянието на пандемията от COVID-19 върху дигитализацията и растежа на българските предприятия (2020-2025)
(The Impact of The COVID-19 Pandemic on The Digitization and Growth of Bulgarian Enterprises (2020-2025))

Author(s):Vanya Bozhkova
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management, ICT Information and Communications Technologies, Socio-Economic Research
Page Range:48-57
No. of Pages:10
Keywords:digitalization; e-commerce; COVID-19; SMEs; Bulgaria
Summary/Abstract:Digitalization represents the process of transforming analog data, processes, and services into digital formats that can be processed by technological systems (Winikoff, 2024). Over the past two decades, it has become a key driver of modern business, accelerating automation, information processing, and the implementation of innovations. The COVID-19 pandemic brought a sudden shift in the economic environment and forced enterprises to transition to flexible, remote, and technology-based operational models. The imposed restrictions, supply chain disruptions, and increased uncertainty positioned digital solutions as a crucial mechanism for business resilience and adaptation. The accelerated digital transformation continued even after the most critical phase of the pandemic, establishing technology as a prerequisite for competitiveness. For Bulgaria, this process holds particular importance, as the crisis revealed structural weaknesses such as limited digital readiness, insufficient innovation investment, and uneven technological development across sectors. At the same time, COVID-19 opened new opportunities for growth in the IT sector, e-commerce, and services, creating conditions for long-term economic expansion. Prior to 2020, Bulgarian enterprises demonstrated solid basic internet infrastructure but low integration of advanced technologies. 96.1% of firms with more than 10 employees had internet access, and 89.1% had a fixed connection, yet only 45.7% possessed high-speed capacity (NSI, 2022). Only 15.9% employed ICT specialists, limiting internal transformation potential. Eurostat (2024) reports that 70.6% of Bulgarian enterprises fall into the category of very low digital intensity - a factor that reduces innovation capacity and efficiency.

Внедряване на изкуствения интелект в банковия сектор: казус банка ДСК

Внедряване на изкуствения интелект в банковия сектор: казус банка ДСК
(Implementation of Artificial Intelligence in The Banking Sector: A Case Study of DSK Bank)

Author(s):Monika Tsvetanova
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies, Socio-Economic Research
Page Range:58-69
No. of Pages:12
Keywords:DSK Bank; Artificial Intelligence (AI); EU AI Act
Summary/Abstract:This report examines the implementation of Artificial Intelligence (AI) in DSK Bank as part of the broader digital transformation of the banking sector in Bulgaria and the European Union. The main trends, benefits, and risks associated with the application of AI technologies in the banking industry are analyzed, as well as their alignment with regulatory frameworks such as the EU AI Act and GDPR. The case study of DSK Bank demonstrates that the use of an AI-based assistant and automated systems can significantly improve efficiency and customer service. At the same time, the report explores challenges related to ethics, transparency, and the protection of customer data. Recommendations are provided for adopting a human-in-the-loop (HITL) approach to achieve a balance between automation and human oversight. In conclusion, it is emphasized that DSK Bank has the potential to become a leading example of responsible and innovative use of AI in the banking sector.

Bank Risk and the 2008 Financial Crisis

Bank Risk and the 2008 Financial Crisis
(Bank Risk and the 2008 Financial Crisis)

Author(s):Fernando Baraza
Language:English
Subject(s):Politics / Political Sciences, Politics, Economy, Supranational / Global Economy, Business Economy / Management, Economic policy, Financial Markets
Page Range:70-79
No. of Pages:10
Keywords:crisis; regulation; leverage; subprime
Summary/Abstract:The 2008 global financial crisis exposed severe structural weaknesses in the international monetary system, including deregulation, excessive leverage, and flawed risk management practices. Originating in the U.S. housing market, the crisis spread rapidly through securitized products such as MBSs and CDOs, whose risks had been underestimated due to overreliance on quantitative models and inflated credit ratings. Risk models, such as Value-at- Risk, failed to capture extreme events and systemic interconnections, while highly leveraged institutions became vulnerable to even small declines in asset values. When the housing bubble burst, liquidity evaporated, interbank markets froze, and fire sales intensified losses, eventually leading to the collapse of major institutions such as Lehman Brothers. The resulting contagion triggered global economic disruption, including sharp declines in trade and widespread financial instability. In response, governments and central banks implemented large-scale interventions, including TARP, emergency liquidity facilities, and coordinated monetary easing. Post-crisis reforms such as Basel III sought to strengthen capital, leverage, and liquidity standards, while improvements in governance and risk culture aimed to reduce excessive risk-taking. Overall, the crisis highlighted the need for robust macroprudential regulation and more resilient financial institutions.

Влиянието на глобалните икономически кризи върху пазарния дял на "Sopharma" AD в България (2007–2025): анализ на конкуренцията и експорта

Влиянието на глобалните икономически кризи върху пазарния дял на "Sopharma" AD в България (2007–2025): анализ на конкуренцията и експорта
(The Impact of Global Economic Crises on The Market Share of "Sopharma" JSC in Bulgaria (2007–2025): An Analysis of Competition and Export Performance)

Author(s):Dani Yakubov
Language:Bulgarian
Subject(s):Economy, Supranational / Global Economy, Business Economy / Management, Micro-Economics
Page Range:80-89
No. of Pages:10
Keywords:Sopharma JSC; pharmaceutical market; global crises; export performance; market share
Summary/Abstract:This report examines the impact of global economic crises on the market share of “Sopharma” JSC in Bulgaria and on the share of exports in the company’s total revenues over the period 2007–2025. The analysis is structured into four sub-periods: the global financial crisis (2007–2009), the post-crisis recovery (2010–2019), the COVID-19 pandemic (2020–2021), and the inflationary/energy-intensive environment preceding Bulgaria’s planned euro adoption (2022–2025). The study applies a combined methodological approach, drawing on corporate reports, IQVIA market data, national and European statistical sources, and EU institutional documents. Trend analysis and comparative evaluation across time periods are used to assess the sensitivity of domestic sales and exports to external shocks and regulatory changes. The results show that the Bulgarian pharmaceutical sector demonstrates relative anti-cyclicality, with Sopharma maintaining or increasing its domestic market share during periods of crisis. In contrast, exports respond more strongly to currency exposure, supply-chain disruptions, and regulatory shifts. During the COVID-19 period, domestic sales surged while exports declined, illustrating heterogeneous market reactions. After 2023, export performance improved in line with regional demand recovery. The upcoming euro adoption in 2026 is expected to reduce transaction costs and currency risk, though it may tighten pricing controls. Overall, the findings indicate stable domestic competitiveness but higher volatility in international markets. Sopharma remains a robust producer with diversification potential, yet exposed to regulatory pressures and global uncertainties that shape long-term strategic positioning.

Анализ на актуални проекти на Световната банка

Анализ на актуални проекти на Световната банка
(Analysis of Current World Bank Projects)

Author(s):Vasilena Gaganelova
Language:Bulgarian
Subject(s):Economy, Supranational / Global Economy, Business Economy / Management, Financial Markets
Page Range:90-100
No. of Pages:11
Keywords:World Bank; projects; green energy; world organization
Summary/Abstract:The report examines the activities of the World Bank as one of the leading international financial institutions, aimed at supporting sustainable economic development, reducing poverty and addressing global challenges. The main accent is placed on an analysis of current projects implemented in recent years in different regions of the world. The study tracks the main priority areas of financing - energy and green transformation, infrastructure and transport, agriculture and food security, recovery after conflicts and natural disasters, as well as digitalization and data management. The work also draws attention to the challenges facing the implementation of projects - delays, administrative obstacles, the need for transparency and effective management of funds. In addition to the global dimensions, potential lessons and opportunities for Bulgaria are outlined. In conclusion, the World Bank remains a key global organization that, through its projects, not only provides capital, but also promotes policies for social, economic and environmental development.

CBDCS: Transforming the Banking Landscape

CBDCS: Transforming the Banking Landscape
(CBDCS: Transforming the Banking Landscape)

Author(s):Javier Ferrandiz
Language:English
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, Financial Markets
Page Range:101-109
No. of Pages:9
Keywords:Central Bank Digital Currencies (CBDCs); financial stability; digital payments; banking disintermediation; monetary innovation
Summary/Abstract:The emergence of Central Bank Digital Currencies (CBDCs) marks one of the most significant transformations in modern finance. As digital versions of sovereign money issued by central banks, CBDCs aim to merge the efficiency of digital payments with the trust and stability of traditional currency. Over the past decade, technological advances and the rise of cryptocurrencies have accelerated central banks’ interest in creating their own digital alternatives (BIS, 2023). This paper explores how CBDCs could reshape the global financial landscape— offering faster and cheaper payments, promoting financial inclusion, and increasing transparency—while also posing serious challenges for the traditional banking sector (IMF, 2023). By allowing citizens to hold money directly with central banks, CBDCs could reduce deposits in commercial banks, affecting their funding models and liquidity management. Case studies from the Bahamas, Nigeria, China, and the European Union show that success depends on thoughtful design, public adoption, and strong regulatory coordination (ECB, 2022; Central Bank of the Bahamas, 2020). Looking ahead, the expansion of CBDCs seems inevitable, but their impact will hinge on how well innovation is balanced with financial stability (BIS, 2021). If managed prudently, CBDCs could modernize global finance and foster inclusion; if not, they risk disrupting the very foundations of banking as we know it.

Зеленото финансиране на Пощенска банка

Зеленото финансиране на Пощенска банка
(Green Financing of Postbank)

Author(s):Ivelina Hristova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, Environmental and Energy policy, Financial Markets, Green Transformation
Page Range:110-123
No. of Pages:14
Keywords:green financing; Postbank; sustainable development; green loans; international partnerships
Summary/Abstract:In the context of increasing climate change and the goal of sustainable economic development, green financing is becoming more and more important for financial institutions. The banking sector has a key role in the transition to a cleaner economy by directing money toward environmentally friendly projects and initiatives. This paper examines how green financing is applied in the activities of Postbank - one of the leading banks in Bulgaria with an active policy in this area. The study aims to analyze the structure, mechanisms, and effects of the bank’s green financial products. It explores the types of green loans offered to households and business clients, as well as Postbank’s international partnerships with the European Bank for Reconstruction and Development, the European Investment Bank, and the International Finance Corporation, which provide guarantees and capital for sustainable investments. The available data show that Postbank has granted more than €260 million in green loans in recent years. The funds are focused on projects related to energy efficiency, renewable energy sources, and sustainable construction. The available data and their analysis indicate that Postbank has provided over €260 million in green financing in recent years, with funds directed toward energy efficiency, renewable energy sources, and sustainable construction. Positive effects have been observed in the form of reduced carbon emissions, lower energy costs, and the promotion of sustainable business practices. In conclusion, green financing has become an important strategic priority for Postbank because It supports the environmental transition while also creating economic and social benefits for its clients and for society as a whole.

Analysis of the Main Banking Risks and Management Strategies in BBVA

Analysis of the Main Banking Risks and Management Strategies in BBVA
(Analysis of the Main Banking Risks and Management Strategies in BBVA)

Author(s):Rodrigo Gallas
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets
Page Range:124-129
No. of Pages:6
Keywords:banking risk management; credit risk; market risk; liquidity risk; operational risk
Summary/Abstract:This report examines the main risks faced by BBVA and how the bank manages them in today’s financial environment. BBVA operates in both stable and emerging markets, which exposes it to different levels of uncertainty, including inflation, interest-rate changes and geopolitical tensions. The analysis focuses on the bank’s risk management framework, which follows key regulatory requirements such as ICAAP, ILAAP and the stress tests carried out by the European Banking Authority. BBVA also uses internal models to measure credit, market, liquidity and operational risks more accurately. The bank maintains solid capital levels, with a CET1 ratio above regulatory expectations, and strong liquidity positions shown by high LCR and NSFR values. The report also highlights the importance of BBVA’s risk culture and governance structure. Decisions are supported by the “three lines of defence” model, which helps ensure that risks are properly identified, monitored and reviewed. Specific challenges, such as credit risk in countries with high volatility like Türkiye or the growing exposure to cyber threats, are analysed together with the strategies BBVA uses to reduce them. Overall, the findings show that BBVA applies a clear, disciplined and forward-looking approach to risk, helping the bank remain stable and resilient over time.

Основни проблеми в дървопреработвателния сектор в България

Основни проблеми в дървопреработвателния сектор в България
(Main Problems in The Wood Processing Sector in Bulgaria)

Author(s):Marin Gagov
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management
Page Range:130-137
No. of Pages:8
Keywords:wood processing sector; Bulgaria; problems
Summary/Abstract:The wood processing sector in Bulgaria, part of the forest industry, provides a livelihood for tens of thousands of people, mainly in the semi-mountainous and mountainous regions, and makes a significant contribution to the country’s GDP. Despite its potential, the industry faces a number of long-standing and deepening problems, which in recent years have led to a crisis and the collapse of many enterprises.

Влиянието на банката за международни разплащания (БМР) върху финансовата стабилност в развиващите се икономики

Влиянието на банката за международни разплащания (БМР) върху финансовата стабилност в развиващите се икономики
(The Impact of The Bank for International Settlements (BIS) on Financial Stability in Developing Economies)

Author(s):Simeon Kutsarov
Language:Bulgarian
Subject(s):Economy, Supranational / Global Economy, Business Economy / Management, Financial Markets
Page Range:138-149
No. of Pages:12
Keywords:financial stability; basel standards; international banking supervision; developing economies; BIS; capital adequacy
Summary/Abstract:The report examines the effects of the BIS on the financial stability of developing countries in the context of the Basel standards – the main instruments for implementing the bank’s policies. The main research question is whether universal rules serve as instruments for financial stability or as an obstacle to the economic development of developing countries.

The Impact of Bulgaria's Eurozone Accession on Attracting Chinese FDI: An Empirical Analysis

The Impact of Bulgaria's Eurozone Accession on Attracting Chinese FDI: An Empirical Analysis
(The Impact of Bulgaria's Eurozone Accession on Attracting Chinese FDI: An Empirical Analysis)

Author(s):Zhenyu Lou
Language:English
Subject(s):Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development
Page Range:150-164
No. of Pages:15
Keywords:Bulgaria; China; FDI; Euro
Summary/Abstract:This report investigates the prospective impact of Bulgaria's accession to the Eurozone on 1 January 2026 on its capacity to attract Foreign Direct Investment (FDI) from the People's Republic of China. Amidst a backdrop of low historical Chinese FDI inflows despite a formal strategic partnership, Euro adoption is often cited by policymakers as a key catalyst. This study employs a qualitative, comparative analysis of analogous Central and Eastern European (CEE) countries—both Eurozone members (Slovakia, Croatia, the Baltic States, Slovenia) and nonmembers (Hungary, Poland)—to empirically assess the "Euro effect." The findings suggest that while Euro adoption enhances macroeconomic stability by eliminating currency risk and reducing transaction costs, it is not a sufficient condition for attracting substantial Chinese FDI. The analysis reveals that strategic alignment with China's industrial policy, particularly within the electric vehicle (EV) value chain, and a proactive national industrial strategy are far more decisive determinants, as evidenced by Hungary's and Slovakia's recent success. The conclusion is that for Bulgaria, the benefits of Euro adoption will likely be muted unless complemented by targeted industrial policies and significant improvements to its domestic business environment to overcome institutional weaknesses identified in its convergence assessments.

Развитие на фармацевтичната индустрия в българската икономика по време на COVID-19

Развитие на фармацевтичната индустрия в българската икономика по време на COVID-19
(Development of the Pharmaceutical Industry in the Bulgarian Economy During COVID-19)

Author(s):Nadezhda Ilieva
Language:Bulgarian
Subject(s):Social Sciences, Economy, National Economy, Business Economy / Management, Sociology, Evaluation research, Health and medicine and law, Economic development
Page Range:165-175
No. of Pages:11
Keywords:pharmaceutical industry; bulgarian economy; COVID-19; resilience; SWOT analysis; Eurozone; regulatory framework; economic contribution; employment; industrial trends
Summary/Abstract:The pharmaceutical industry is one of the key sectors of the Bulgarian economy, playing an important role in public health, employment, and economic growth. This report examines the development of the industry in recent years, with a particular focus on the impact of the COVID-19 pandemic. The sector managed to maintain the production and supply of essential medicines while simultaneously adapting to increased demand for hospital pharmaceuticals and vaccines. The development of the industry is characterized by sustained growth in sales, expansion of generic medicines, and increased exports to the European Union. The Bulgarian pharmaceutical industry is distinguished by a well-structured regulatory system, including the Bulgarian Drug Agency and the National Health Insurance Fund, which ensure the quality, safety, and accessibility of pharmaceutical products. The sector occupies a significant position in the economy, contributing to national GDP and employment by providing jobs for thousands of specialists. The SWOT analysis identifies strengths such as a highly qualified workforce and a stable distribution network, weaknesses such as dependence on imported raw materials, opportunities in the fields of biotechnology and digital health, as well as threats arising from global supply chains and regulatory changes. Preparation for Bulgaria’s accession to the Eurozone will create new economic challenges and opportunities for the sector, including expected adjustments in pricing, cost optimization, and enhanced competitiveness. The Bulgarian pharmaceutical industry remains an important driver of the healthcare system and the economy, continuing to develop and adapt to contemporary requirements and global trends.

Credit Risk Management at Banco Santander

Credit Risk Management at Banco Santander
(Credit Risk Management at Banco Santander)

Author(s):Inés Rodríguez
Language:English
Subject(s):Economy, Business Economy / Management, Micro-Economics, Financial Markets
Page Range:176-185
No. of Pages:10
Keywords:credit risk management; Banco Santander; non-performing loans; financial stability and regulatory compliance
Summary/Abstract:This paper analyses Banco Santander’s credit risk management practices, focusing on how the bank identifies, measures, monitors, and mitigates potential losses from borrower defaults. Effective credit risk management is crucial for financial stability, profitability, and regulatory compliance, as it directly impacts portfolio quality and capital requirements. The study reviews Santander’s internal policies, organizational structure, technological tools, and monitoring systems, as well as key financial indicators such as non-performing loans, provisions, and coverage ratios. It also compares Santander’s performance with other major international banks to contextualize its practices. The topic is highly relevant given ongoing regulatory changes, economic fluctuations, and emerging risks such as climate, cyber, and technological threats. The methodology combines a descriptive and analytical approach, including the examination of official reports, financial statements, and specialized literature. Qualitative analysis of risk policies, governance, and risk culture is integrated with quantitative evaluation of portfolio quality and benchmarking against peers. Findings indicate that Santander maintains a strong and proactive credit risk management framework. Through advanced internal rating systems, continuous monitoring, portfolio diversification, and regulatory compliance, the bank demonstrates resilience to defaults and adverse conditions, ensuring sustainable profitability and reinforcing investor and customer confidence.

Усвояването на средствата по националния план за възстановяване и устойчивост в България: проблеми и потенциални решения

Усвояването на средствата по националния план за възстановяване и устойчивост в България: проблеми и потенциални решения
(Absorption of Funds Under the National Recovery and Resilience Plan in Bulgaria: Problems and Potential Solutions)

Author(s):Viktoria Efremova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, National Economy, Business Economy / Management, Governance, Public Administration, Economic policy, EU-Approach / EU-Accession / EU-Development
Page Range:186-198
No. of Pages:13
Keywords:NLP; recovery and resilience mechanism; assimilability
Summary/Abstract:The report analyzes the implementation of Bulgaria's National Recovery and Resilience Plan (NRRP) under the EU Recovery and Resilience Facility, examining the institutional, regulatory and policy factors that determine the pace of progress. A review of the structure of the Plan, the key pillars and the actual implementation of the measures, as well as the reasons for the accumulated delay compared to the initially set goals, is provided. The study is based on the hypothesis that excessive administrative burden, political instability and delayed regulatory adaptation limit the effectiveness of the Plan as a tool for accelerated transformation. Methodologically, the report uses descriptive and comparative analysis using data from the European Commission, the UMIS 2020 and official public documents related to the implementation of the NLP.

Анализ на дейността на Европейската служба за борба с измамите в периода от 2020 г. до 2024 г.

Анализ на дейността на Европейската служба за борба с измамите в периода от 2020 г. до 2024 г.
(Analysis of the Activities of The European Anti-Fraud Office in the Period From 2020 to 2024)

Author(s):Daniela Yordanova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Governance, Public Administration, EU-Approach / EU-Accession / EU-Development, Corruption - Transparency - Anti-Corruption
Page Range:199-208
No. of Pages:10
Keywords:European anti-fraud office; cases; fraud; corruption
Summary/Abstract:The review of the activities carried out by OLAF for the period 2020–2024 identifies methodological and administrative strengthening, manifested in intensified digitalisation and enhanced cooperation with other institutions. The period under review spanned the COVID-19 pandemic, the Russian Federation’s invasion of Ukraine, and other external pressures. Other influencing factors include the completion of high-value investigations and a focus on safeguarding funds at increased risk. Throughout the period under review, OLAF demonstrated efficiency and effectiveness in managing its operations and institutional resilience.

Credit Risk Management and Financial Stability: A Case Study of BNP Paribas Fortis

Credit Risk Management and Financial Stability: A Case Study of BNP Paribas Fortis
(Credit Risk Management and Financial Stability: A Case Study of BNP Paribas Fortis)

Author(s):Lucas Desmet
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:209-218
No. of Pages:10
Keywords:credit risk; BNP Paribas Fortis; financial performance; ESG
Summary/Abstract:This work shows the way in which BNP Paribas Fortis protects its financial stability in a rapid, dynamic banking environment and in the process of managing risks. Credit risk management, capital strength and compliance with Basel III rules is emphasized. The bank appliessound governance framework, which includes the “three lines of defense” mechanism, to manage risks at all the levels. BNP Paribas Fortis maintains high CET1 ratios, solid liquidity and therefore is relatively safe against financial shocks. With checking income, repayment history and financial statements, the credit risk is monitored while customers are tracked continuously during and after receiving loans. The study is a qualitative analysis of official accounts issued by the bank. In general conclusion, the findings indicate that BNP Paribas Fortis remains reliable, competitive; and well-positioned for future challenges by investing in digital banking and sustainability.

Необменимостта на валутите и превалутирането при консолидацията на чуждестранни предприятия съгласно МСС 21

Необменимостта на валутите и превалутирането при консолидацията на чуждестранни предприятия съгласно МСС 21
(Lack of exchangeability and revaluation in the consolidation of foreign operations in accordance with IAS 21)

Author(s):Nikolay Yovchev
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:219-227
No. of Pages:9
Keywords:lack of exchangeability; functional currency; foreign enterprise; presentation currency; consolidated financial statements
Summary/Abstract:The report considers amendments to IAS 21, The Effects of Changes in Exchange Rates, effective 1 January 2025, which introduce new guidance on currency Lack of Exchangeability and its impact on the translation of financial statements of foreign entities. The two-step approach for assessing convertibility and estimating the spot rate for non-convertibility is presented, as well as the new disclosure requirements for the associated risks and effects. The principles for applying IAS 21 in consolidating foreign entities, including translation of financial statements and treatment of exchange differences, are also discussed in turn. Emphasis is placed on the role of IAS 21 in ensuring that the financial results of foreign entities are translated and presented correctly in the consolidated accounts to ensure that they are comparable and present fairly the financial position of the group. The report highlights the importance of the amendments as a step towards more accurate and transparent financial reporting in an environment of currency volatility.

Нефинансова отчетност на болниците в България: изисквания, изпълнение, ползи

Нефинансова отчетност на болниците в България: изисквания, изпълнение, ползи
(Non-Financial Reporting of Hospitalls in Bulgaria: Requierments, Implemenation, Benefits)

Author(s):Stanislava Stefanova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Social Sciences, Economy, Business Economy / Management, Governance, Public Administration, Sociology, Health and medicine and law, Accounting - Business Administration
Page Range:228-239
No. of Pages:12
Keywords:non-financial reporting; ESG; sustainability; corporate transparency
Summary/Abstract:Non-financial reporting is becoming established as a key instrument for communicating the sustainability and corporate responsibility of organizations, extending beyond the scope of traditional financial reporting. In the healthcare sector – and particularly within hospitals – it is gaining increased importance due to high public sensitivity, the need for trust, and the strategic relevance of the quality and accessibility of medical services. This report examines non-financial reporting in Bulgarian hospitals as a tool for corporate transparency, sustainable management, and long-term strategic positioning. The theoretical and normative foundations of non-financial reporting are discussed within the context of the ESG dimensions (environmental, social, and governance), including key European directives (NFRD, CSRD), strategic documents of the World Health Organization, and the new global framework IFRS Sustainability Disclosure Standards. A theoretical framework for key performance indicators (KPIs) for hospitals is presented, based on the EU Taxonomy and the Sustainable Development Goals, adapting ESG indicators to the specific characteristics of healthcare systems. Non-financial reporting practices in Bulgarian hospitals are analyzed, with attention given to the national regulatory framework. In conclusion, the report identifies the interdependence of ESG dimensions, the role of non-financial reporting in fostering transparency and sustainable development, and the need for the more systematic adoption of non-financial standards within the Bulgarian hospital sector.

Cyber Risk Management in Ibercaja’s Digital Transformation

Cyber Risk Management in Ibercaja’s Digital Transformation
(Cyber Risk Management in Ibercaja’s Digital Transformation)

Author(s):Jacobo Peláez
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:240-248
No. of Pages:9
Keywords:cyber risk management; operational resilience; digital transformation; DORA; ICT third-party risk
Summary/Abstract:This paper studies how Ibercaja – a Spanish banking group with a strong retail and SME focus – manages cyber risk while it pushes a major digital transformation. The aim is simple: check whether the bank’s strategy, controls, and governance are good enough to grow digital services without losing resilience or breaking the rules. I look at three flagship moves: the longterm technology deal with NTT DATA, the purchase and integration of Orange Bank Spain’s platform, and the consumer-finance build with Mambu on a cloud-native core. Using public documents and EU regulation as the base, I classify the main risks that come with these changes: outages during system migrations, third-party and concentration risk, data protection under GDPR, internal process errors and fraud, and cyberattacks such as phishing, ransomware, DDoS and data breaches. I place these in the EU context shaped by DORA and the AI Act, which lift expectations on incident handling, testing, and supplier oversight. On governance, Ibercaja reports a Board-approved Risk Appetite Framework, a three-lines model, and an Operational Risk function that combines self-assessments, a loss-events database, and KRIs. The case examples show how transition risk, resilience targets and vendor controls work in practice. The conclusion is pragmatic: keep resilience measurable with service-level objectives, invest in AI-assisted monitoring and strong data protection, maintain up-to-date third-party registers and tested exit plans, and continue training staff and informing customers.

Ефективност на гаранционните инструменти на Европейския инвестиционен фонд за подкрепа на малките и средни предприятия

Ефективност на гаранционните инструменти на Европейския инвестиционен фонд за подкрепа на малките и средни предприятия
(Effectiveness of the European Investment Fund’s Guarantee Instruments in Supporting Small and Medium-sized Enterprises)

Author(s):Mihaela Atanasova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Financial Markets
Page Range:249-258
No. of Pages:10
Keywords:SMEs; financing; guarantee instruments; efficiency
Summary/Abstract:Small and medium-sized enterprises (SMEs) are vital to the European Union. Despite their significant contribution, SMEs often face challenges in accessing finance. In response, the European Investment Fund (EIF) has developed targeted financial instruments aimed at improving their access to credit through banks, guarantee institutions, and other intermediaries. Among these instruments, credit guarantees play a key role in addressing market failures related to information asymmetry, lack of collateral, and limited credit history of SMEs. Research shows that guaranteed loans lead to substantial growth in assets, sales, and employment, especially among small and young firms. Moreover, they reduce the likelihood of bankruptcy and stimulate innovation, demonstrating the effectiveness of guarantee mechanisms as a tool for sustainable SME growth in Europe.

Ролята на устойчивото финансиране като инструмент за екологична трансформация

Ролята на устойчивото финансиране като инструмент за екологична трансформация
(The Role of Sustainable Finance as a Tool for Environmental Transformation)

Author(s):Martina Stankova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Energy and Environmental Studies, Environmental and Energy policy, EU-Approach / EU-Accession / EU-Development, Financial Markets, Green Transformation
Page Range:259-268
No. of Pages:10
Keywords:sustainable finance; environmental transformation; multilateral development banks; European Investment Bank; EU Taxonomy; ESG standards
Summary/Abstract:The report explores the pivotal role of the European Investment Bank (EIB) in promoting sustainable finance and integrating Environmental, Social, and Governance (ESG) principles into its operations. As a leading institution for sustainable finance within the European Union, the EIB implements ESG frameworks, follows EU regulatory directives, and provides specialized financial instruments. Since 2019, the institution has been positioned as the climate bank of the European Union, supporting climate-related and sustainability initiatives designed to deliver measurable economic, environmental, and social benefits.

The Use of Artificial Intelligence in Credit Risk Management at BBVA

The Use of Artificial Intelligence in Credit Risk Management at BBVA
(The Use of Artificial Intelligence in Credit Risk Management at BBVA)

Author(s):Ana Lorenzo
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:269-278
No. of Pages:10
Keywords:Artificial Intelligence; Credit Risk Management; BBVA; Machine Learning; Banking Regulation
Summary/Abstract:This paper examines the integration of Artificial Intelligence (AI) into credit risk management at BBVA, one of Europe’s leading digitally oriented banks. As financial institutions increasingly rely on data-driven tools to ensure resilience and competitiveness, AI offers new capabilities for predicting defaults, optimizing credit scoring, and monitoring portfolios in real time. The study explores how machine learning (ML) models, big data analytics, and cloud architectures enable BBVA to enhance decision-making accuracy and operational efficiency while reducing non-performing loan ratios and improving capital allocation. The analysis identifies AI’s main contributions to credit risk management: improved predictive performance, faster and more consistent credit decisions, and dynamic monitoring through real-time data integration. It also highlights how BBVA’s digital transformation strategy — including the development of centralized data platforms and multidisciplinary governance frameworks — supports the responsible deployment of AI across business lines. However, the paper also emphasizes the challenges associated with AI adoption. Issues such as algorithmic bias, lack of transparency, data protection, and compliance with evolving regulations (e.g., GDPR and the EU AI Act) require careful governance and ethical oversight. BBVA’s approach combines model explainability, human-inthe-loop controls, and rigorous validation processes to ensure fairness and accountability in automated decision-making. The findings suggest that AI fundamentally reshapes credit risk management by complementing — not replacing — human expertise. The successful implementation of AI at BBVA demonstrates that technological innovation, when guided by ethical principles and strong regulatory alignment, can strengthen both risk resilience and financial inclusion. The study concludes that responsible AI integration represents not only a competitive advantage but also a necessity for sustainable banking in the digital era.

България и Съдът на ЕС, 20 години по-късно – развитие, влияние и подобрение на правните рамки след подписването на договора за встъпване на България в ЕС от 01.01.2006 Г.

България и Съдът на ЕС, 20 години по-късно – развитие, влияние и подобрение на правните рамки след подписването на договора за встъпване на България в ЕС от 01.01.2006 Г.
(Bulgaria and Court of Justice of The European Union, 20 Years Later – Development, Influence and Improvement of The Legal Framework After the Signing of The Treaty Accession of Bulgaria to The European Union Since 01.01.2006)

Author(s):Ivan Petrov
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Law, Constitution, Jurisprudence, Governance, Public Law, EU-Approach / EU-Accession / EU-Development, EU-Legislation
Page Range:279-293
No. of Pages:15
Keywords:Court of Justice of the European Union; Bulgaria; case law; legislation; harmonization; European Law; Taxes; Tax-legal system
Summary/Abstract:Transaction has for object to consider and present how Bulgaria has developed and harmonized its judicial and legal system since 01.01.2006 to this day, how European legislation and more specifically the Court of Justice of the European Union have influenced with its judicial practice and whether this leads to an improvement of the legislation and harmonization with the Law of the European Union. Also how this affects the tax-legal system of Bulgaria in the last 20 years.

Financial Stress and Systemic Risk Management in Spain

Financial Stress and Systemic Risk Management in Spain
(Financial Stress and Systemic Risk Management in Spain)

Author(s):Daniel Alejandre
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets
Page Range:294-302
No. of Pages:9
Keywords:financial stability; systemic risk; stress testing; non-bank financial sector and cyber resilience
Summary/Abstract:This paper examines financial stress conditions and systemic risk management in Spain, drawing on evidence from the Bank of Spain’s Spring 2025 Financial Stability Report. The analysis begins by outlining the macroeconomic and financial context, highlighting the evolution of household, corporate, and public sector vulnerabilities. It then assesses the performance and resilience of the Spanish banking system, focusing on profitability, solvency, and liquidity indicators. Stress-testing results and systemic risk metrics are reviewed to identify key vulnerabilities, including exposure to sovereign debt and real estate markets. The paper also explores emerging sources of systemic risk, such as geopolitical tensions, inflationary pressures, and risks stemming from the non-bank financial sector. Finally, it evaluates the macroprudential policy framework and recent measures implemented by the Bank of Spain, including the activation of the countercyclical capital buffer. By combining descriptive evidence with analytical insights, the study aims to provide a comprehensive view of Spain’s financial stability and the effectiveness of current risk management strategies.

Дигитализация и мобилно банкиране в България и ЕС

Дигитализация и мобилно банкиране в България и ЕС
(Digitization and Mobile Banking in Bulgaria and The EU)

Author(s):Vyara Petrova
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:303-311
No. of Pages:9
Keywords:Digitalization; Mobile Banking; Regulations
Summary/Abstract:The report examines digitalization and mobile banking as the main drivers of the development of the banking sector in Bulgaria and the EU. It analyzes the implementation of innovations, risk management and the adaptation of financial institutions to new technologies. The role of the regulatory framework – the PSD2 Directive and the DORA Regulation – which ensure a secure and competitive digital environment is presented.

Credit Risk Management in Syndicated Loans

Credit Risk Management in Syndicated Loans
(Credit Risk Management in Syndicated Loans)

Author(s):Teodor Totkov
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets
Page Range:312-319
No. of Pages:8
Keywords:Syndicated Loan; Syndicated Lending; Syndicate; Credit Risk Management
Summary/Abstract:This paper contends that syndicated lending is not merely a scaled-up version of bilateral credit but a fundamentally different paradigm that generates unique risk management challenges. The shift to a multilateral structure introduces inherent agency problems between the lead arranger and participant lenders, complicates the equitable distribution of risk, and creates collective action failures in monitoring and enforcement. Through a synthesis of established literature, this analysis demonstrates how the market has developed sophisticated mechanisms to mitigate these issues. Strategic loan retention by the lead arranger aligns incentives, deliberate syndicate design signals loan quality, and comprehensive covenant structures automate oversight. Ultimately, the syndicated loan market emerges as a self-correcting system where financial innovation successfully manages the complex risks born from its own structure, ensuring its vital function in global capital markets.

Киберсигурност и управление на риска в Уникредит Булбанк

Киберсигурност и управление на риска в Уникредит Булбанк
(Cybersecurity and Risk Management at Unicredit Bulbank)

Author(s):Albena Dervisheva
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Micro-Economics, Financial Markets, ICT Information and Communications Technologies
Page Range:320-331
No. of Pages:12
Keywords:cybersecurity; banking risk; UniCredit Bulbank; digitalization; data protection
Summary/Abstract:Nowadays, digitalization is rapidly expanding, and cybersecurity is becoming a key component of risk management in the banking sector. UniCredit Bulbank, as a leading financial institution in Bulgaria, invests significantly in protecting customer data and information systems. Some of the main threats include phishing, smishing, malware, and fake banking websites. The bank applies an integrated approach to managing cyber risk through technical measures, staff training, customer awareness campaigns, and compliance with European and national regulations. Effective cyber risk management is essential for minimizing potential damage and maintaining trust in the banking institution.

Международната финансова корпорация и България по пътя на преход към зелена икономика: проект „Соларен парк св. Георги“

Международната финансова корпорация и България по пътя на преход към зелена икономика: проект „Соларен парк св. Георги“
(The International Finance Corporation and Bulgaria on The Path Toward a Green Economy: The “St. George” Solar Park Project)

Author(s):Desislava Ilieva
Language:Bulgarian
Subject(s):Economy, Energy and Environmental Studies, Socio-Economic Research, Green Transformation
Page Range:332-341
No. of Pages:10
Keywords:The “St. George” solar park project; International Finance Corporation (IFC); green economy; blended finance, Bulgaria
Summary/Abstract:This report examines the role of the International Finance Corporation (IFC) in supporting Bulgaria on its path toward a green economy, focusing on a specific example—the “St. George” photovoltaic power plant project. The project is located in the municipality of Silistra, in Northeastern Bulgaria, and is one of the most significant in the region. It was launched in 2024 and is expected to be completed in 2025. It is financed with the support of the IFC and symbolizes a successful model of cooperation between international institutions, the state, and the private sector. The report presents the main economic, social, and environmental impacts of the project’s implementation, as well as its role as an example of sustainable development and the transition to a green economy in Bulgaria.

Bank Risks During Euro Currency Conversion and The Role of Artificial Intelligence in Their Management

Bank Risks During Euro Currency Conversion and The Role of Artificial Intelligence in Their Management
(Bank Risks During Euro Currency Conversion and The Role of Artificial Intelligence in Their Management)

Author(s):Rangel Mryanov
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:342-353
No. of Pages:12
Keywords:Euro adoption; Banking risk management; Artificial intelligence; Financial stability; Predictive analytics
Summary/Abstract:This paper investigates the key banking risks associated with the adoption of the euro in Bulgaria and evaluates the role of artificial intelligence (AI) in mitigating these risks. The study identifies five major categories of exposure that may intensify during the currency conversion process: credit, liquidity, operational, market, and reputational risks. Through analysis of theoretical concepts, policy reports, and real-world case studies, the paper highlights both the anticipated economic benefits of euro adoption – such as lower transaction and financing costs, increased investment, and enhanced financial stability – and the short-term operational and regulatory challenges for the banking sector. The research shows that AI-driven technologies, including predictive analytics, fraud detection systems, automation tools, and real-time market monitoring, can significantly strengthen risk-management frameworks and improve resilience during structural financial changes.

Еврозоната като маркетингово предимство: как българските компании могат да използват единната валута за по-успешно позициониране на международните пазари (2020–2025)

Еврозоната като маркетингово предимство: как българските компании могат да използват единната валута за по-успешно позициониране на международните пазари (2020–2025)
(The Eurozone as a Marketing Advantage: How Bulgarian Companies Can Use the Single Currency to Position More Successfully in International Markets (2020–2025))

Author(s):Miroslava Aleksandrova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Marketing / Advertising
Page Range:354-360
No. of Pages:7
Keywords:euro; marketing; eurozone; competitiveness; bulgarian companies
Summary/Abstract:This report examines the process of Bulgaria’s accession to the eurozone as an opportunity to enhance the competitiveness and international image of Bulgarian companies. The analysis examines how the single currency can become a marketing advantage by building trust, strengthening brand identity and facilitating trade relations. Theoretically, the report covers the relationship between currency integration and strategic marketing, while the empirical part examines real examples from countries such as Slovakia, Croatia and Slovenia. The study covers the period 2020-2025 and presents practical guidelines on how Bulgarian businesses can use the euro as a tool for growth, trust and stability.

The Impact of Climate Change on Banking Risk Management: Strategies for Sustainable Finance

The Impact of Climate Change on Banking Risk Management: Strategies for Sustainable Finance
(The Impact of Climate Change on Banking Risk Management: Strategies for Sustainable Finance)

Author(s):Georgi Georgiev
Language:English
Subject(s):Economy, Energy and Environmental Studies, Financial Markets
Page Range:361-370
No. of Pages:10
Keywords:climate change; banking risk; liquidity; sustainable finance; framework
Summary/Abstract:Climate change introduces a complex network of risks that directly and indirectly influence the stability of the banking sector. These risks, usually classified as physical, transition, and liability risks, interact with traditional financial risk categories, including market, credit, liquidity, and operational risks. The connection between these elements forms a critical web through which environmental disruptions can evolve into systemic financial vulnerabilities.

Съвременни тенденции на Българска фондова борса София през последните 3 години (2023-2025)

Съвременни тенденции на Българска фондова борса София през последните 3 години (2023-2025)
(Contemporary Trends on The Bulgarian Stock Exchange Sofia During the Last 3 Years (2023-2025))

Author(s):Atanas Chavdarov
Language:Bulgarian
Subject(s):Economy, Supranational / Global Economy, Financial Markets
Page Range:371-375
No. of Pages:5
Keywords:stock exchange; price index; fluctuation; causes
Summary/Abstract:The topic of the report is the Bulgarian Stock Exchange and its trends observed over the last three years (2023–2025). We will attempt to determine if there has been growth in the Bulgarian market, if there is interest from foreign investors, and the price indices of the stock market will also be examined in detail in order to provide a maximal accurate broad view of all aspects, as well as the reasons behind these price fluctuations.

The Impact of Credit Risk on The Profitability of Procredit Bank

The Impact of Credit Risk on The Profitability of Procredit Bank
(The Impact of Credit Risk on The Profitability of Procredit Bank)

Author(s):Ralitsa Dimitrova
Language:English
Subject(s):Economy, Business Economy / Management, Micro-Economics, Financial Markets
Page Range:376-386
No. of Pages:11
Keywords:problems; solutions; results; SWOT analysis
Summary/Abstract:Banks are one of the financial institutions without which a country's economy would not thrive nor people would be able to live as easily as now. However, no matter how many customers a bank has, how profitable or well-known it is, it is susceptible to risks. There are a lot of obstacles that could prevent the financial institution from functioning properly, but one of them which is still up to date is the credit risk. Therefore, ProCredit bank – one of the biggest banks in Bulgaria, will be researched as to see how the credit risk influences on it and what measures the bank takes in order to handle that kind of threat.

Последици от ковид кризата върху туризма в България

Последици от ковид кризата върху туризма в България
(Impact of the COVID-19 Crisis on Tourism in Bulgaria)

Author(s):Stilyanya Zagorska
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Tourism
Page Range:387-394
No. of Pages:8
Keywords:tourism; COVID-19; economic crisis; consequences; recovery
Summary/Abstract:This report examines the consequences of the COVID-19 crisis on the tourism sector in Bulgaria through an analysis of the economic, social, and macroeconomic effects of the pandemic. It presents the significance of tourism for the national economy in the pre-pandemic period, as well as the structure and main forms of tourism activity in the country. As a result of the implemented restrictive measures and the sharp decline in international travel, a significant drop in tourist flows, severe financial losses, and negative impacts on employment in the sector were observed. The role of domestic tourism as a partially compensating factor is analyzed, along with the acceleration of adaptation and transformation processes related to digitalization and the implementation of sustainable tourism practices. The report also examines the impact of the crisis on the labor market, regional disparities, and public finances, as well as the role of national anti-crisis measures and European programs. In conclusion, the report emphasizes the need for a long-term strategic approach to the development of tourism in Bulgaria, aimed at enhancing the sector’s resilience, diversification, and competitiveness.

Европейската централна банка и България: институционални взаимодействия и предизвикателства по пътя към Еврозоната

Европейската централна банка и България: институционални взаимодействия и предизвикателства по пътя към Еврозоната
(The European Central Bank and Bulgaria: Institutional Interactions and Challenges on The Road to The Eurozone)

Author(s):Tsvetomila Kolarova
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Financial Markets
Page Range:395-408
No. of Pages:14
Keywords:ECB; Eurozone; Euro; Bulgaria; challenges
Summary/Abstract:The purpose of this report is to examine the main functions of the European Central Bank, as well as the changes that occur for the central bank of a country joining the Eurozone. The study also focuses on the challenges and risks facing Bulgaria in the adoption of the euro. The subject of the research is the analysis of institutional interactions and challenges on the path toward the Eurozone. The main tasks are related to reviewing the relevant literature, collecting information on the topic, examining the experience of other countries, and reviewing the activities of the ECB in similar situations. The thesis is that the challenges facing Bulgaria are similar to those encountered by other countries at the time of their accession.

Managing Reputational Risk in The Age of Social Media: Challenges for Modern Banks

Managing Reputational Risk in The Age of Social Media: Challenges for Modern Banks
(Managing Reputational Risk in The Age of Social Media: Challenges for Modern Banks)

Author(s):Mariana Draganova
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Financial Markets
Page Range:409-418
No. of Pages:10
Keywords:reputational risk; banking; social media; operational resilience; governance; AI; trust management; crisis communication
Summary/Abstract:Reputational risk has become one of the most critical non-financial risks in the banking sector, driven by the accelerating pace of information and the power of social media. The study explores how banks can manage this risk in a digital context where perception spreads globally in seconds. It combines qualitative analysis, case studies, and regulatory review to examine the mechanisms through which social media amplifies crises. Findings reveal that social platforms can create “digital bank runs,” where negative sentiment quickly turns into financial loss. The paper concludes that banks must integrate artificial intelligence (AI)-based monitoring, transparent communication, and an ethical culture into their governance structures. The contribution of this research lies in its interdisciplinary perspective, bridging finance, technology, and behavioral science, to propose a framework for sustainable reputation management in modern banking.

Влиянието на чуждестранните инвестиции в ИТ сектора върху българската икономика по време и след приключването на КОВИД-19

Влиянието на чуждестранните инвестиции в ИТ сектора върху българската икономика по време и след приключването на КОВИД-19
(The Impact of Foreign Investment in The IT Sector on The Bulgarian Economy During and After the COVID-19 Pandemic)

Author(s):Kristiyan Stanev
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, ICT Information and Communications Technologies, Socio-Economic Research
Page Range:419-427
No. of Pages:9
Keywords:COVID-19; IT sector; Bulgarian economy; foreign investment
Summary/Abstract:One of the most memorable events of this decade is the COVID-19 pandemic. It negatively affected the global economy, as well as every national economy individually, yet the IT sector was among the few that managed to adapt and find ways to withstand the consequences. Factors such as foreign investment in the export of IT services from Bulgaria, the possibility for remote work, and accelerated digitalisation played an essential role in stabilising this industry in the country and enabling it to contribute to mitigating the consequences of the pandemic. This report examines the period preceding the pandemic, when foreign companies began investing in the Bulgarian IT industry; the period during COVID-19, which triggered accelerated investments and adaptation, service export and digitalisation; as well as the factors that motivated foreign investors to trust the Bulgarian market, alongside the potential future development of the industry. The limitations of the research arise from differences in data and financial figures found in various sources and publications.

Ефектът на COVID-19 кризата върху строителния сектор

Ефектът на COVID-19 кризата върху строителния сектор
(The Impact of the COVID-19 Crisis on The Construction Sector)

Author(s):Vasil Nikolchev
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management, Socio-Economic Research
Page Range:428-438
No. of Pages:11
Keywords:COVID-19; construction; infrastructure; interest rates; supply chains
Summary/Abstract:This report analyzes the impact of the COVID-19 crisis on the construction sector over the period 2019–2022, focusing on differences between building construction and civil engineering. The main research hypothesis is that the pandemic had the strongest negative effect on the private segment of building construction (around a 10–11% decline), while civil engineering/infrastructure construction demonstrated relative resilience (approximately a 1.5% decline) due to the dominant role of public financing and EU-funded programs. The report also considers the pre-crisis growth phase (2015–2019) and the subsequent downturn (2020–2021), driven by lockdowns, disruptions in supply chains, and labor shortages, as well as broader macroeconomic developments (e.g., GDP declines in the EU and Bulgaria). Methodologically, the study combines comparative, statistical, and empirical analysis based on secondary data from Eurostat, the European Commission, the ECB, the Bulgarian National Bank, the Bulgarian Construction Chamber, and other institutional sources. Low mortgage interest rates are highlighted as a key “shock absorber,” partly mitigating the negative impact on residential construction.

Behavioral Risk in Banking: The Impact of Human Decision-Making on Risk Management Frameworks

Behavioral Risk in Banking: The Impact of Human Decision-Making on Risk Management Frameworks
(Behavioral Risk in Banking: The Impact of Human Decision-Making on Risk Management Frameworks)

Author(s):Mihaela Ilieva
Language:English
Subject(s):Social Sciences, Economy, Psychology, Business Economy / Management, Behaviorism, Financial Markets
Page Range:439-446
No. of Pages:8
Keywords:behavioral risk; cognitive; underestimation; lapses
Summary/Abstract:Behavioral risk has emerged as a critical but often underappreciated dimension of risk management in banking. While traditional frameworks emphasize quantitative metrics and model-based controls, they frequently overlook the influence of human behavior on decision-making processes. This paper examines how cognitive biases, emotional drivers, and organizational culture contribute to the breakdown of risk management systems within financial institutions. Drawing on key case studies - including the 2008 Financial Crisis and the Barings’ Bank Collapse, my analysis demonstrates that human factors can systematically distort risk perceptions, misalign incentives, and undermine governance mechanisms. The paper argues that behavioral risk must be integrated explicitly into enterprise risk management frameworks through behavioral audits, training initiatives, and governance reforms. Furthermore, it proposes the use of decision architecture tools and advanced analytics to strengthen institutional resilience.

Инвестиции в дигитализацията на българската публична администрация

Инвестиции в дигитализацията на българската публична администрация
(Investments in Digital Government of Bulgarian Public Administration)

Author(s):Stanislav Turlakov
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, Business Economy / Management, Governance, Public Administration, Economic policy, ICT Information and Communications Technologies
Page Range:447-457
No. of Pages:11
Keywords:digitalization; public administration; investments, e-government; information and communication technologies
Summary/Abstract:In today’s dynamic and complex environment, constant adaptation is essential to ensure that societal systems meet contemporary needs and challenges. The rapid pace of global and national economic development inevitably drives the transformation of all sectors, including public governance. The digitalization of public administration has thus emerged as a key priority for improving efficiency, transparency, and the quality of services delivered to citizens and businesses in Bulgaria so as to be more flexible, responsive, and citizen-oriented entities. This report explores the dimensions of investments in the digitalization of the Bulgarian public administration within the broader context of globalization and the concept of e-government. The aim is to assess the current state of the problem and the practices of technology deployment in administrative service delivery for citizens and businesses. The study seeks to identify the principal challenges facing ICT in the public sector.

Artificial Intelligence in Banking Operations: Mitigating or Creating Risks

Artificial Intelligence in Banking Operations: Mitigating or Creating Risks
(Artificial Intelligence in Banking Operations: Mitigating or Creating Risks)

Author(s):Nikol Nikolova
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:458-465
No. of Pages:8
Keywords:Artificial Intelligence; Banking Operations; Risk management; Algorithmic bias; Credit scoring; Fraud detection; AML Monitoring; European Banking Authority; Financial regulations; Operational risk
Summary/Abstract:This paper provides an in-depth look into the impact of artificial intelligence (AI) I banking operations, as well as the evolving risks withing the financial sector. As banks increasingly integrate their artificial intelligence into their processes, like fraud detection, credit scoring, customer due diligence and AML monitoring (anti-money laundering), this type of technology offers substantial advantages including improved accuracy, faster processing, reduced operational costs as well as enhanced regulatory compliance capabilities. At the same time, the adoption of artificial intelligence introduces some complex and often some unprecedented risks. These include things like algorithmic bias, model opacity, data-quality deficiencies, vulnerabilities to cyber-attacks, concentration risk also arises due to resilience on third-party technology providers as well as challenges in ensuring auditability and explainability of machine-learning models. The paper below further examines regulatory perspectives from the Basel Committee, the European Banking Authority (EBA) as well as the EU AI Act, outlining hoe supervisors expect banking institutions to implement effective governance, independent validation and continuous monitoring in order to safeguard financial stability. By delving into and evaluating both the opportunities and risks, the paper gives an insight on whether AI can significantly strengthen the resilience of the banking sector, but only when deployed withing a robust framework, which is able to prioritize transparency, ethical use and strong risk-management controls.

Пазарът на ипотечни кредити в България по време на КОВИД-19 кризата

Пазарът на ипотечни кредити в България по време на КОВИД-19 кризата
(The Mortgage Loan Market in Bulgaria During the COVID-19 Crisis)

Author(s):Simona Nikova
Language:Bulgarian
Subject(s):Economy, Business Economy / Management, Financial Markets, Socio-Economic Research
Page Range:466-475
No. of Pages:10
Keywords:mortgage loans; interest rate; COVID-19 crisis
Summary/Abstract:This report analyzes the development of the mortgage lending market in Bulgaria during the COVID-19 crisis (2020–2022). Despite the initial economic shock, the sector demonstrated strong resilience and robust growth. The main thesis is that the mortgage lending boom is structurally sound and does not lead to excessive macroeconomic indebtedness. Housing loans increased by nearly 50%, supported by low interest rates, a stable banking system, and the perception of real estate as a hedge against inflation. The ratio of housing loans to GDP remained stable. The SWOT analysis highlights the sector’s strengths as well as risks related to future interest rate increases and inflationary pressures.

Възможностите и предизвикателствата пред България във връзка с разширяването на БРИКС (2018 – 2025 г.)

Възможностите и предизвикателствата пред България във връзка с разширяването на БРИКС (2018 – 2025 г.)
(Opportunities and Challenges for Bulgaria in Connection with The BRICS Enlargement (2018 – 2025))

Author(s):Petar Stefanov
Language:Bulgarian
Subject(s):Politics / Political Sciences, Politics, Economy, National Economy, Business Economy / Management, Governance, International relations/trade, Geopolitics
Page Range:476-482
No. of Pages:7
Keywords:enlargement; BRICS; Bulgaria
Summary/Abstract:This report examines how Bulgaria will be affected by the growth of the international organization BRICS in the period between 2018 and 2025. The main emphasis will be placed on economic aspects – trade, investment, energy security, financial architecture and opportunities for market diversification. The accession of new members and partners to BRICS changes the balance in the club in certain areas and significantly increases the weight of the organization in the global economy, which creates problems for EU member states such as Bulgaria, but also opportunities for broader cooperation in the field of trade and investment.

Climate Risk and its Impact on Banks Stability: Measuring and Managing Environmental Financial Risks

Climate Risk and its Impact on Banks Stability: Measuring and Managing Environmental Financial Risks
(Climate Risk and its Impact on Banks Stability: Measuring and Managing Environmental Financial Risks)

Author(s):Martin Dikanski
Language:English
Subject(s):Economy, Business Economy / Management, Energy and Environmental Studies, Financial Markets
Page Range:483-489
No. of Pages:7
Keywords:Climate risk; Bank stability; Sustainable finance; ESG; Climate stress testing
Summary/Abstract:Climate change has become a key source of financial risk for banks, affecting asset values, credit quality, and overall financial stability. This paper analyzes how physical, transition, and liability climate risks influence bank risk profiles and systemic stability. It also examines methods for measuring climate risk, including stress testing and disclosure frameworks, and discusses management strategies within a sustainable finance context.

Негативни последици от ковид пандемията за аграрния сектор в България

Негативни последици от ковид пандемията за аграрния сектор в България
(Negative Consequences of The COVID Pandemic for The Agricultural Sector in Bulgaria)

Author(s):Mladen Tsonev
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management, Agriculture, Socio-Economic Research
Page Range:490-495
No. of Pages:6
Keywords:COVID-19; agriculture; Bulgaria; exports; employment
Summary/Abstract:The report analyzes the impact of the COVID-19 pandemic on the agricultural sector in Bulgaria for the period 2019–2021. Based on official data from the Ministry of Agriculture (2021), the National Statistical Institute (2021) and Eurostat (2022), it is found that in 2020, exports of agricultural goods remained practically unchanged, while imports increased by about 8%. This led to a decline of nearly 28% in the positive trade balance. The sector is experiencing labor shortages due to mobility restrictions, and demand for certain products – mainly dairy and meat – is decreasing.

Cyber Risk in Banking: Challenges, Management Strategies and The Path Forward

Cyber Risk in Banking: Challenges, Management Strategies and The Path Forward
(Cyber Risk in Banking: Challenges, Management Strategies and The Path Forward)

Author(s):Elitsa Slavcheva
Language:English
Subject(s):Economy, Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:496-501
No. of Pages:6
Keywords:cyber risk; banking; cybersecurity; risk management; financial regulation
Summary/Abstract:The digital transformation of banking has exposed financial institutions to significant cyber threats. This paper examines cyber risk in modern banking, analyzing threat types, consequences and regulatory frameworks. Drawing on incidents including the 2016 Bangladesh Bank heist, the 2019 Capital One breach and the 2020 SolarWinds attack, the paper illustrates how cyberattacks result in financial losses, reputational damage and systemic disruption. The analysis explores risk management strategies and emphasizes the critical role of human factors. Finally, the paper addresses emerging challenges including quantum computing and the cybersecurity workforce shortage, concluding that effective cyber risk management requires continuous adaptation and integration of technology, people and processes.

Развитие на сектора на хотелиерството в България през периода 2022-2025г.

Развитие на сектора на хотелиерството в България през периода 2022-2025г.
(Development of the Hotel Sector in Bulgaria in The Period 2022-2025)

Author(s):Alexander Rangachev
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management, Tourism, Socio-Economic Research
Page Range:502-511
No. of Pages:10
Keywords:hotel sector; Bulgaria; financial indicators
Summary/Abstract:This report analyzes the development of the Hospitality sector in Bulgaria for the period 2022-2025, based on official data from the National Statistical Institute (NSI), the Ministry of Tourism, Eurostat, OECD and the World Travel and Tourism Council (WTTC). The main objective is to assess the dynamics of employment, revenues, capacity and investment activity in the sector in the context of the post-pandemic recovery and geopolitical factors affecting tourism in Europe. The period 2022–2025 is characterized by a recovery in domestic and international tourist flows, with the number of overnight stays in accommodation increasing by over 30% compared to 2021, and overnight revenue exceeding pre-COVID-19 levels already in 2023. The sector contributes approximately 3.4% of GDP and provides employment for over 120 thousand people, with employment stabilization and increased investment in mid- and high-end hotels expected in 2024– 2025. The main trends include accelerated digitalization, growing interest in sustainable (eco) practices and diversification of tourism products. Despite the positive dynamics, the sector remains sensitive to inflationary pressures, a shortage of qualified personnel and dependence on external markets, especially German, Romanian and Polish. The report offers a structural analysis of the sector, including the dynamics of key economic indicators, as well as forecast trends for 2025 and the following period.

Развитие на аутсорсинга в ИКТ сектора в българската икономика в условия на пандемията от COVID-19 и в прехода на страната към членство в еврозоната (2020- 2025)

Развитие на аутсорсинга в ИКТ сектора в българската икономика в условия на пандемията от COVID-19 и в прехода на страната към членство в еврозоната (2020- 2025)
(Development of Outsourcing in The ICT Sector in The Bulgarian Economy in The Context of The COVID-19 Pandemic and The Country's Transition to Membership in The Euro Area (2020-2025))

Author(s):Emilia Elenkova
Language:Bulgarian
Subject(s):Economy, National Economy, Business Economy / Management, ICT Information and Communications Technologies, Socio-Economic Research
Page Range:512-519
No. of Pages:8
Keywords:Outsourcing; ICT sector; Employment; Digitalization; Technology
Summary/Abstract:The report examines the development of the outsourcing industry within the ICT sector in Bulgaria for the period 2020-2025, with a focus on the impact of COVID-19 and preparations for membership in the euro area. The analysis shows high resilience and adaptability of the sector, with the pandemic accelerating digitalization, remote work and the demand for technology and business services. This supports the growth of ABP, ITO and R&D activities and strengthens the role of industry in the economy through added value, innovation and attraction of international companies. Bulgaria is establishing itself as an attractive nearshoring destination, despite the challenges associated with staff shortages and competition. The expected accession to the euro area is emerging as a factor for more sustainable growth and better access to international markets.

Behavioral Risk and Human Error in Banking

Behavioral Risk and Human Error in Banking
(Behavioral Risk and Human Error in Banking)

Author(s):Stefania Veneva
Language:English
Subject(s):Social Sciences, Economy, Psychology, Business Economy / Management, Behaviorism, Financial Markets, Socio-Economic Research
Page Range:520-528
No. of Pages:9
Keywords:behavioral risk; human error; operational risk; banking culture; risk governance
Summary/Abstract:This paper examines behavioral risk and human error in the banking sector, integrating psychological frameworks, organizational analysis, and empirical data to assess the scale, drivers, and mitigation measures. The research synthesizes supervisory and industry reports, operational loss databases, and high-profile case studies (e.g., Barings Bank, Wells Fargo) to demonstrate how cognitive biases, incentive structures, and weak controls lead to financial losses and reputational harm. Policy and managerial recommendations are provided to embed behavioral insights within risk frameworks. (Sources: EBA, ORX, Reuters, BIS.)

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