Bulgaria is ranked fourth in terms of nonperforming loans among Central and East European countries in a financial stability report drafted by the World Bank. According to the report, which is based on end-September data, Bulgaria's bank nonperforming loans to total loans stood at 8%, up from 6.9% in 2004. Serbia and Ukraine recorded the region's worst performance with 19.8% and 19.6%. However, both have improved on their previous performances. Romania was just ahead of Bulgaria with 8.2%, almost unchanged from the last couple of years. Although they are encumbered with more nonperforming loans, the banks operating in Central and East Europe boast a solid return on assets, said the report. Moldova posted a bank return on assets in excess of 3% in 2005 while Bulgaria recorded 2.2%, virtually flat year-on-year. In terms of bank return on equity, Bulgaria ranks third in Central and East Europe with 23.6%, trailing only the Czech Republic and Latvia.