-term loans, also by purpose. With minor exceptions, no
information was available on the volume of loans extended, on loan
maturities, or on interest rates after 1970. Statistics had also been
published on the volume of personal savings in the accounts of the
saving bank at the end of each year.

The total amount of loans outstanding at the end of the year increased
from 3.6 billion leva in 1965 to 9.2 billion leva in 1971. The
proportion of long-term loan balances rose from 24 percent of the total
amount in 1965 to 40 percent in 1970 but declined to less than 36
percent in 1971. The increase in lending activity to 1970 was a direct
consequence of the partial shift from predominantly budgetary financing
of economic activities to a substantial measure of self-financing by
enterprises and trusts. The subsequent decline was related to the
tightening of investment credit in an effort to reduce waste in the
construction program (see Investment, this ch.). Long-term loans have
been granted predominantly, if not exclusively, for fixed investment
purposes.

Of the 3.27 billion leva in long-term loans outstanding at the end of
1971, 2.61 billion leva was due from state and collective enterprises,
and 660 million leva was owed by private individuals who had borrowed to
finance home construction. Only 12.5 percent of the loan balances was
due from collective farms--an amount equivalent to barely 62 percent of
the sums owed by private individuals. Collective enterprises in industry
and services had outstanding loans of only 13 million leva. In relation
to the value of each sector's fixed assets in 1971, the proportion of
outstanding long-term loans was: state enterprises, 11.3 percent;
collective farms, 16.1 percent; and collective artisans, 2.9 percent.

Nine-tenths of the short-term loan balances at the end of 1971 were owed
by state enterprises, and one-tenth was due from collective enterprises.
Wholesale and retail trade accounted for 36 percent of the outstanding
loans; industry and construction were each liable for 28 percent.
Short-term loan balances of agriculture amounted to less than 8 percent
of the total sum, and balances of the services sector constituted less
than 0.2 percent. The largest part of short-term loans was granted for
working capital purposes, including the procurement of farm products. A
balance of almost 1 billion leva, however, was outstanding on loans for
the completion of building construction, inclu