CONSUMER LOANS
Nearly 24 per cent of  consumer loans in Bulgaria in the first five months of 2006 were taken to re-finance old loans, according to statistics from credit consultancy company Credit Centre. The loans were usually in the range of 8000 to 14 000 leva and were also used to pay for goods bought through leases. Demand for loans grew by 22 per cent compared to the first five months of 2005. Most loans were for repairs (28.18 per cent), followed by furniture (17.68 per cent) and cars (10.56 per cent). The smallest share was for travel and holidays.

HOUSING LOANS
DZI and Postbank started offering housing loans at 4.95 per cent interest on June 14. The loan is in Swiss francs and the special interest offer is valid for everyone who applies before the end of August 2007. Ilian Raychev, head of the home loans department, said that loans in Swiss francs were "extremely beneficial" because monthly payments were low and the repayment period was long, 35 years.

MBB UNIONBANK
MKB Unionbank (MKBU) doubled its capital base to 129.5 million leva, which made it one of the 10 largest banks in Bulgaria in terms of capital. Following a shareholders' decision, the bank's registered capital has been increased by 25 million leva, to 40.411 million leva. The resolution was adopted at the shareholders' general meeting on June 18. MKBU will issue 25 million new shares, each with a face value of one lev, the bank said on June 19. MKB Bank, Hungary, which retains its 60 per cent ownership of MKB Unionbank, will subscribe 15 million of the newly issued shares and will pay 15 million leva for the shares. Union-Group will acquire 8.5 million shares for the total amount of 8.5 million leva, and the European Bank for Reconstruction and Development will subscribe 1.5 million of the newly issued shares and will pay 1.5 million leva. MKBU bank also started giving loans for storehouse records up to 500 000 leva. The loans will be allowed without documentation for the business of the credit receiver and will have interest of 7.5 per cent. MKBU is financing 85 per cent of the grain market price. The client has to have a valid contract and storehouse records for grain deposit, issued by licensed public storehouses with which MKBU works.

RAIFFEISENBANK
Raifeisenbank's assets for 2007 first three months rose by 38.76 per cent in comparison to the same period in 2006, reaching 4.028 billion leva. The bank's credit portfolio increased to 2.138 billion leva (by 56.79 per cent). Companies and individuals deposits with Raifeisenbank amounted to 2.447 billion leva at the end of the period, which is with 44 per cent more than in 2006. Raiffeisenbank has already become one of the leading company creditors in Bulgaria with a 10.42 per cent market share, posting 16.83 million leva profit after tax for Q1 2007. The bank attracted a total of 285 million euro from foreign financial institutions in the first three months of 2007.