In January 2023, the average interest rate on consumer loans in BGN decreased by 0.71 p.p. up to 8.93%
Interest rates on consumer loans are falling again, BNB data show. In January 2023, the average interest rate on consumer loans in BGN decreased by 0.71 p.p. up to 8.93%, and the annual percentage rate (APR) of these loans – by 0.71 p.p. up to 9.45% compared to a month earlier, pariteni.bg informs.
There is a slight increase in the interest on housing loans in BGN – by 0.01 p.p. to 2.61%, and the annual expenses on them decrease by 0.04 p.p. to 2.82%. The average interest rate on other loans in BGN increased on a monthly basis by 0.11 p.p. to 3.34%.
The average interest rate on other loans in BGN for Employers and self-employed persons maintains its level of 3.17%. In January 2023, the average overdraft interest rate in BGN decreased by 0.11 p.p. up to 14.46%, and for credit card loans, outside the interest-free grace period, in BGN it increases by 0.11 p.p. to 20.52%.
Bulgarians take out more consumer loans, BNB also reports. The volume of new consumer loans in BGN increased by 16.7% (BGN 84.7 million) to BGN 591.2 million, and that of renegotiated loans and refinancing loans – by 26.8% (BGN 23.2 million) to BGN 110 million. However, new loans for home purchase decreased – by 23.2% (BGN 144.9 million) to BGN 480.7 million, and that of renegotiated loans and refinancing loans increased by 4.1% (BGN 6.7 million) to BGN 169.4 million
However, this is not the case with loans for companies.
Their interest rates are already on the rise, and in January the average interest rate on loans up to EUR 1 million contracted in BGN increased by 0.11 p.p. up to 3.35%, and for those over 1 million euros – with 0.55 p.p. to 3.61%. The average interest rate on loans up to EUR 1 million contracted in euros increased by 0.17 p.p. up to 4.15%, and for loans over 1 million euros – by 0.22 p.p. to 4.13%. In January 2023, the average overdraft interest rate in BGN increased by 0.07 p.p. up to 2.74%, and on the overdraft in euros – by 0.33 p.p. to 3.71%.
The increase in interest rates also leads to fewer withdrawn loans, as those up to EUR 1 million contracted in BGN decrease by 15% (BGN 61.1 million) to BGN 347.3 million, and over EUR 1 million – by 44.9% (BGN 387.7 million) to BGN 476.7 million. The volume of renegotiated loans and refinancing loans in BGN decreased by 27.1% (BGN 133.4 million) to BGN 358.2 million.
However, there is an increase in interest rates on company deposits, and in January 2023, compared to December 2022, the average interest rate on deposits with contractual maturity (DDM) in BGN increased by 0.04 p.p. up to 0.47%, and for those in euro – by 0.47 p.p. up to 0.95%.
The average interest rate on overnight deposits in levs increased slightly to 0.01%, and on those in euros it increased by 0.01 p.p. to 0.02%. The volume of new business on deposits with agreed maturity in BGN increased by 37.4% (BGN 63.6 million) to BGN 234 million, and on deposits in Euro decreased by 6.7% (BGN 21.9 million) to 303.9 million. BGN
However, household deposits bring them less money, with the interest rate falling by 0.05 bp. up to 0.29% for those in BGN, and for those in Euro – by 0.39 p.p. to 0.88%. Average interest rates on overnight deposits in BGN and EUR remain at 0.01%.
The average interest rates on deposits agreed upon for use after notice in BGN and in EUR maintain their levels of 0.11% and 0.16%, respectively. The volume of new business on deposits with agreed maturity in BGN decreased by 4.9% (BGN 8.6 million) to BGN 164.4 million, and on deposits with agreed maturity in Euro increased by 0.3% (BGN 0.4 million) up to BGN 171.9 million
Follow the latest news with BLITZ and on Telegram. Join the channel here
