CREDIT SUPPORT FOR THE AGRICULTURAL SECTOR IN BULGARIA: STRUCTURAL ANALYSIS AND ECONOMIC DIMENSIONS

This paper examines the dynamics and significance of lending in the agricultural sector of the Republic of Bulgaria and its connection with the sector's economic contribution. Using data from the Bulgarian National Bank and FAO for 2000-2023, the analysis focuses on the structure of loans by size and term and a comparative analysis of Bulgaria with EU-27 countries. The study includes the calculation of the Agricultural Orientation Index (AOI), which normalises credit support against the economic contribution of agriculture. The results show that Bulgarian agriculture faces more limited access to credit, which restricts its investment potential compared to other EU countries. The regression analysis reveals a positive correlation between lending and the gross value added of the agricultural sector, with lending explaining approximately 52% of the variation in the sector's economic contribution. The study emphasises the need to develop a more targeted credit policy that meets the specific needs of agricultural producers in Bulgaria and supports their competitiveness and sustainability.