2024-03-04 19:35:20
The BNB can cool lending if necessary. This is a possible scenario according to Governor Dimitar Radev. The statistics of the central bank show that for the last few months the interest rates in our country are around 2.5%. For comparison – in the euro area, the average interest on mortgages is almost twice as high – 4.5%.
According to data from the central bank, the withdrawn credits in Bulgaria are worth BGN 20 billion. And the savings – over BGN 78 billion.
This makes banks hyper-liquid, experts say.
200,000 loans with which 200,000 households bought or renovated their home. These are the mortgages in our country for BGN 20 billion, according to data from commercial banks.
If the loan is, for example, BGN 100,000, the monthly installment is BGN 490. The amount is lower than the rent a household would pay in a larger city, credit consultants calculate. The fear is that mortgage rates may gradually go up.
Experts do not expect a drastic jump in interest rates on loans this year. On average, loans are expected to become more expensive between 0.1 and 0.5%.
The average interest rates in the market are around 2.2% and 2.8%. We calculate how much the loan will become more expensive if the interest rate increases by 1%, bTV reported.
“The average loan for the country is BGN 200,000 and the interest rate is 2.5%, the installment is about BGN 790-800. If the interest rate increases and reaches 3.5, then the installment jumps up by 100 BGN. For the big cities of Sofia, Varna, Burgas, it should be borne in mind that a loan of BGN 200,000 is not for our markets, then the difference will be 100 euros or 200 BGN,” said Elena Mihailova – credit expert.
The BNB says that the strong growth of housing loans is maintained. And Governor Dimitar Radev believes that this can increase household indebtedness.
“This may require the implementation of additional measures by the BNB in 2024, such as the imposition of system-level requirements on borrowers that banks are obliged to apply when granting loans to households.”
Financial specialists advise people not to take out loans that will weigh on the family budget and to have at least 20% of the loan value saved as a deductible.