FINANCING STRUCTURE OF THE CORPORATE INVESTMENTS IN THE BULGARIAN ECONOMY – STATE OF THE ART AND POTENTIAL DEVELOPMENT

Significant and stable economic growth has been the main goal of Bulgarian economic policy in recent years. However, the Bulgarian financial market still seems undersized, and the relationship between bank lending and other capital supply, with the absence of the latter (although with a few exceptions), is one of the primary reasons for companies (especially small and medium enterprises - SMEs) borrowing credits from the banking system. Scarce access to forms of capital other than lending makes Bulgarian SMEs extremely dependent on the actions of banks, especially considering that most companies in Bulgaria are these sizes. Our statistical investigation has highlighted the strong impact of long-term bank credits on investments in the Bulgarian economy in the period from 2008 to 2019, making necessary the development of additional and alternative financing forms and potentially even considering the opportunities emerging from the Next Generation EU program.