The banking system is liquid, the banking sector is in good shape, although the year has been turbulent. In fact, deposits are increasing – people are really worried and therefore saving. This also means that there are not many investment opportunities, the purchase of housing is increasing, which we are watching very closely, but it is worrying for the economy that there will be no investment. This was stated by BNB Governor Dimitar Radev. He added that banks should be more careful in granting mortgage loans – there is a tendency up in the real estate market and to avoid a bubble, the BNB is already taking measures. For what exactly measures are in question, REMEMBER HERE!
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The question is not whether there will be GDP growth, but how much. We need economic growth, significantly higher than the EU average – we are not seeing it at the moment, but I hope it will happen in the medium term, Radev told bTV. We need outpacing economic growth, he stressed. What were the forecasts for the necessary growth by BAS only 2 years ago – REMEMBER HERE!
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Inflation is outpacing economic growth, which is a worrying trend. This is what economist Rumen Galabinov told Monitor. & …
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At the same time, Radev believes that inflation will be higher for a longer period of time, but will be brought under control next year.
We are technically ready to do the huge amount of work to become a member of the eurozone in 2024. We have to see it politically – political requests were made, let’s see, Radev said. According to him, we will not be in debt so much as to violate the fiscal and other criteria for joining the EU monetary union.
Somewhere around 6 months before the accession to the eurozone, the lev-euro exchange rate will be finally fixed. 1.95583 will be the rate to be used upon our accession. The lev and the euro will be used within a month of our entry into the eurozone, but prices will be announced in levs and euros 6 months before entering the eurozone and 1 year thereafter. Deposits in BGN will be automatically converted into EUR, added Radev.
The BNB Governor also believes that our banking sector is very attractive to Europeans and gave an example with Raiffeisenbank deal. BDB is by no means risky, he said.
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The Bulgarian economy is expected to recover from the crisis caused by the pandemic at the end of the third quarter of next year …
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For the Magnitsky law, Radev called for a legal framework for what happens when a foreign country imposes sanctions such as the Magnitsky one. He pointed out that these sanctions will not create a shock because they have become uncollectible loans, as there were not many large loans for those sanctioned. Which persons sanctioned by the United States, REMEMBER HERE!
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