Corporate financing stirs up, reporting BGN 190 m growth in a month
Business crediting has begun to recover with corporate financing reporting a growth of BGN 190 m in September, Bulgarian National Bank (BNB) data showed. According to central bank statistics, interest rates on corporate loans in BGN decreased by 0.5% to 9.75% last month, while interest rates on credits in euro dropped by 0.75% to 8.73%. The decrease resulted in a higher volume of loans released in September, totaling BGN 765.5 m, a 27% increase month-on-month.
Moreover, BNB data reveals yet another piece of good news for consumers and businesses. The weighted average interest rate on all newly-released credits in September was 9.66%, marking its lowest level for the last four months. The average interest rate in August was almost 1% higher - 10.44%.
Interest rates on consumer loans in BGN remained unchanged from August at 13.96%. Credits in euro reported a 0.25% drop in interest rates to 11.40%. This is the third reduction in interest rates since the beginning of the year.
In spite of lower interest rates, however, the volume of extended consumer loans still follows the August downward trend. In September, the amount of such credits declined by BGN 4.3 m to BGN 128.3 m, registering a 67.75% decrease year-on-year.
Interest rates on housing credits in euro dropped by 0.31% to 8.73%, while credits in BGN registered a 0.5% growth to 10.48%, BNB data showed. The decrease of interest rates on loans in euro resulted in an increase in the volume of newly-extended mortgage credits by BGN 8.3 m to BGN 58.1 m, while loans in BGN rose by just BGN 1.1 m. In spite of the slight monthly increase, these dropped by 65.7% on an annual basis.
Despite the decline in interest rates, the overall cost of household credits is going up. Banks compensate for lower interest rates by hiking fees. Statistics show that the annual percentage rate of costs (an indicator of the actual cost of credits) for consumer loans in BGN is rising by the minimum 0.01% to reach 15.26%, registering an increase for a second successive month. The increase for housing loans is 0.32% to 11.28%.
Text and photo source: klassa.bg
To see the presentation of the company, please follow the link:
Presentation of Mirela Real Estate
(29.10.2009)