Sun, Nov 22 2009

Bulgarian banks press ahead with loan rate increases

Fri, Jun 05 2009 01:51 CET byDnevnik.bg 1166 Views
Bulgarian banks press ahead with loan rate increases

Photo: Юлия Лазарова

Bulgarian banks put up loan interest rates and a number of fees in May 2009, with consumer loan prices rising by a wider margin than mortgages, showed statistics compiled by financial consultancy Moite Pari.
 
Rates and fees were increased by UniCredit Bulbank, Alpha Bank, First Investment Bank (FIB), Allianz Bank Bulgaria and Cibank.
 
Banks will continue to tweak rate policies until the market cools off. Rates are expected to hover around their current levels, Tihomir Toshev, executive director of credit consultants Credit Center, told Dnevnik. Lenders’ interest rate policies hinge on the cost of resources as well as their targeted market position, among other factors, he said.
 
The credit is still tight and expensive, with all new borrowers digging deeper in their pockets, according to the report.
 
At the same time, banks are plagued by a shortage of liquidity as is seen by the ongoing deposit promotions offering generous return, the analysts said.
 
In May, nine institutions extended the duration of their special deposit offers or rolled out new products. The focus has shifted to longer periods of six and 12 months.

Source: Dnevnik.bg

Comments

Anonymous Caldorpg Sat, Jun 27 2009 04:37 CET

This comment has been removed by the moderator because it contained .

Write comment

Name:Comment:

Generate new code
Send your comment
Bulgaria’s consumer prices lowest in EU – Eurostat

Consumer prices in Bulgaria in 2008 were 51 per cent of the European Union average, according to statistics released on July 16 2009. However, the average income of Bulgarian households was said by Eurostat in April to be eight times lower than the EU average.

Bulgarian banks double income requirements for mortgages

Even though low prices are taking down the total amount needed to strike a deal, borrowers still feel intimidated by high interest rates.

Consumer confidence, retail turnover decline – new statistics

Bulgaria’s National Statistical Institute says consumer confidence dropped 7.6 points from January to April 2009, while retail revenues are also on the slide.

Bulgarian banks refrain from dividend payouts for 2008

Money to be used to strengthen capital positions in line with promise to Bulgarian National Bank.

Bulgarian banks go hard on loan applicants

Bulgarian banks put up loan rates and fees, pulled consumer lending products and ended promotions in February as the global financial meltdown raged on

More in this category

Bulgarian MPs resurrect proposal to raise spirits excise

Strong public opposition to price hikes prompted Prime Minister Boiko Borissov to axe the Finance Ministry proposal to increase the excise duty on spirits, but MPs have put it back on the agenda.

Back to the future

Bulgaria’s Cabinet seeks to reverse recent changes in the telecommunications sector

At a crossroads, again

Kremikovtzi’s prospects for a recovery plan appear increasingly distant

Cash or card?

Bulgarians are getting the hang of debit and credit cards, MasterCard says

Bulgarian telecom Spectrum Net acquires local peer Orbitel

The two telecoms, both set up to challenge former fixed-line state monopoly BTC, will merge operations and expect to report 20 million euro in revenue and a gross profit of five million euro in 2010.

© 2000-2009, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.