Measures to slash interest rate may have opposite effect: BNB Sub Governor Dimitar Kostov
In an interview with Trud Daily, BNB Sub Governor Dimitar Kostov warns that the set of measures the government plans to urge in an attempt to trim loan interest rates on the local banking market may prove wrong and even result in higher loan prices. The central bank is against any further transparency in the way interest rates are calculated in the country, as it could endanger the business of the banks since the SOFIBOR index on the inter-bank market tracks quotations instead of actual deals and lenders cannot be sure whether they will get the resource they need at any moment. Commenting on the idea of using an index based on the average deposit interest in the country, Mr. Kostov says it is nonsense as it relies mainly on statistical information, which can be biased.
Text and photo: http://www.focus-fen.net
(20.03.2012)