Bulgaria's central bank has been discussing measures to reduce the number of non-performing loans, which has been falling but is still a burden on the well-capitalized banking sector in the country, BNB Governor Dimitar Radev said.

Bulgaria's financial system has stabilized since the 2014 bankruptcy of the country's fourth-largest credit institution - Corporate Commercial Bank due to fraud and internal misappropriation, but bad loans remain a challenge according to reports by the International Monetary Fund and the European Commission.

The review of asset quality and the stress test carried out by the Central Bank last year in order to restore confidence in the sector helped banks better assess credit risks and curb bad loans, Dimitar Radev added.