Small corporate loans are the most advantageous; interest rates on deposits decrease
The interest rates on credits and deposits in the Bulgarian banking sector are decreasing on an annual basis, Bulgarian National Bank (BNB) statistics shows. According to BNB data, the most attractive loans at the end of April were those amounting up to €1 mln, withdrawn in European currency. The companies that borrowed small credits in the fourth month of the year paid an average interest rate of 7.2%, or 1.61% lower than a year earlier and 0.78% lower, compared to March 2011. Central bank experts say that large corporate credits are not advantageous to businesses at present. The interest rates on loans exceeding €1 mln increased dramatically at the end of April on an annual basis from 7.76% in 2010 to 9.93%, or by 2.17 percentage points.
The interest rates on all kinds of household credits have registered a decrease, BNB specifies. The average mortgage credit in Bulgaria is currently granted at an 8% interest rate regardless of the currency - Euro or BGN. The interest rates on consumer loans vary depending on the currency, standing at 12.12% for credits in BG leva and falling below 10% to 9.77% for loans in Euros.
The downward trend in the interest rates on deposits persists for both household and corporate deposits, BNB data shows. At the end of April, the corporate deposits yielded some 2.84% to 3.47% interest rate, while the yield of natural persons’ deposits was higher, standing at 5.54% on average for deposits in BG leva and at 4.84% for these in Euros.
Yesterday, MKB Unionbank announced a 0.5% increase in the interest rate on the Club savings deposit for its regular customers. In order to benefit from this increase, however, clients will have to add BGN 50, €25 or $25 for six consecutive months to their savings deposits and the bank will in turn raise the interest rate on them by 0.5% as of the seventh month.
Internet source: klassa.bg
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