The Bulgarian National Bank (BNB) set the countercyclical capital buffer rate for credit risk exposures in Bulgaria at 2.25% for Q4 2027, maintaining the rate from previous quarters. As of the end of Q2 2026, the credit-to-GDP ratio stood at 77.9%, with a negative deviation of -14.0 p.p., corresponding to a zero value of the reference indicator. The bank regulator noted that the deviation of the credit-to-GDP ratio from its long-term trend does not adequately reflect the cyclical risks’ tendencies, so its assessment incorporated additional indicators which are focused on developments in the credit market, indebtedness, real estate market as well as the general economic outlook. The decision to maintain the buffer at 2.25% is on the back of the uncertain external environment with geopolitical tensions, increased energy prices and weaker global growth prospects posing risks to both economic activity and inflation.