Lending rates in Bulgaria increase in Jan 2012.

By bne IntelliNews February 28, 2012
In January 2012, interest rates on all kinds of loans increased in monthly terms, according to central bank data. The rates on newly-issued mortgages marked the slightest increases of 0.08pps to 8.18% for BGN-denominated and 0.17pps to 8.18% for EUR-denominated loans. In annual terms, the interest rates on mortgages in BGN have decreased by 0.19pps while the EUR-denominated ones added 0.36pps. The rates on consumer loans in BGN, EUR, and USD went up by 0.46pps in a month to 12.32%, 0.08pps to 9.82% and 9.24pps to 14.14%, respectively. In annual terms, the interest rates on EUR-denominated consumer loans show a downward trend while those in BGN and USD have increased. The rates on corporate loans denominated in BGN, EUR and USD increased by 0.2pps in a month to 9.53%, 0.97pps to 9.77% and by 1.13pps m/m to 9.32%, respectively. In annual terms, interest rates on all kinds of corporate deposits have increased. The finance ministry is expected to present for discussions its proposal for amendment in the mechanism for setting loan interest rates aiming to reduce their levels. The main planned changes are as follows: linking the household loan interest rates to EURIBOR or SOFIBOR to facilitate the comparison of the rates between the different banks; legislative changes regarding the payment of the taxes on loans extension, which are paid by the loan-taker at present the taxes should be shared between the bank and its clients or they would drop; regulating small consumer loans of less than BGN 400 (EUR 204.5).

Lending rates in Bulgaria increase in Jan 2012.

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