Bulgarian companies are among the least indebted in the European Union, according to the latest Eurostat data for the end of 2025. Corporate debt among non-financial enterprises in Bulgaria stands at 45% of gross domestic product, significantly below the EU average of 70.1% and the euro area average of 71.6%.
Based on this indicator, Bulgaria ranks 20th among the 27 EU member states, placing it among the eight countries with the lowest levels of corporate indebtedness. Only seven countries report lower business debt, with Romania recording the lowest level, followed by Croatia, which is slightly ahead of Bulgaria.
The figures show that Bulgarian companies depend considerably less on bank lending and bond financing compared with the average European business sector. The indicator measures the liabilities of non-financial corporations to banks and through issued debt securities, while excluding financial institutions and loans exchanged between companies within the same country.
Bulgaria also remains well below the level considered by the European Commission as a possible warning sign for excessive corporate debt. Under the EU’s Macroeconomic Imbalance Procedure, a corporate debt level above 85% of GDP is used as a benchmark for potential risks.
With corporate debt at 45% of GDP, Bulgaria is far from that threshold. At the same time, seven EU countries have already exceeded it, including Belgium, France, the Netherlands, Cyprus, Sweden, Denmark and Luxembourg.
However, the ranking does not fully reflect the financial situation of every country. Some of the highest debt levels are recorded in countries that serve as international financial centers, where multinational companies often organize financing operations within their corporate groups.
Luxembourg leads the ranking with corporate debt equal to 251.1% of GDP, followed by Denmark with 115.4%, Sweden with 108.6%, Cyprus with 107.3% and the Netherlands with 106.3%. In several of these countries, central banks have published alternative calculations showing that the actual debt burden of domestic companies is considerably lower because of the role these economies play in global financial flows.
France is among the exceptions, with corporate debt reaching 91.6% of GDP. The French central bank considers the level a genuine macro-financial vulnerability rather than simply a result of international financial activity.
The data also challenge some common perceptions about highly indebted economies. Italy and Greece, which have the highest levels of public debt in the EU at 137% and 146% of GDP respectively, have comparatively moderate corporate debt levels. Business debt amounts to 55.1% of GDP in Italy and 58.6% in Greece, both below the European average.
For Bulgaria, the relatively low level of corporate debt indicates that companies rely less on borrowed financing than businesses in many other EU countries. This can point to a more cautious approach and lower financial risks, but it may also reflect more limited access to capital for investment and expansion.
Compared with the EU and euro area averages, as well as countries where corporate debt exceeds the European Commission’s warning threshold, Bulgaria remains among the member states with the least indebted business sectors. The country therefore stands apart from major European financial hubs, where high debt figures are often influenced by international corporate financing activities. (Novinite)