MKB
Bulgaria’s MKB Unionbank was the fastest-growing subsidiary of Germany’s Bayerische Landesbank in the first half of 2008, when its assets increased by 83 per cent, double the growth rate of the Bulgarian banking sector, the bank said on July 15. With assets of 1.25 billion leva at end-June, it was the eighth-largest bank in the country, while its credit portfolio over the same period grew by 110 per cent to reach 910.5 million leva at end-June.

CREDIT GROWTH
Interest rates on loans will continue to grow this year, but the uptick will be moderated by increased competition among the banks, Bulgarian National Bank (BNB) said in its quarterly review of the economy. Lending activity will remain brisk throughout 2008, but credit growth will slow down to an annual rate of 40 per cent by the end of the year. The increase in interest rates is inevitable given the increased cost of external lending resources, the central bank said.

SYNDICATED LOAN
Postbank, the subsidiary of Greek Eurobank EFG group, has mandated Austria’s Raiffeisen Zentralbank to arrange a 150 million euro syndicated loan agreement. The Austrian bank, which will act as lead manager of the loan, and Postbank signed an agreement to this effect on July 17.

SUITORS FOR DRESDNER
At least three financial institutions were interested in the acquisition of Dresdner Bank, the banking subsidiary of insurer Allianz, Thompson Financial reported on July 14. BNP Paribas was said to be one of the suitors, with local peer Commerzbank and an unnamed Russian institution also on the list. Allianz is yet to say officially whether it wants to sell Dresdner Bank. In Bulgaria, Dresdner Bank operates under the name Allianz Bank.

DECISION LATITUDE
The management of Bulgaria’s First Investment Bank, the country’s sixth largest lender by assets, will be able to make decisions on issuing debt instruments of up to two billion leva, double the amount it was previously allowed to do, after its shareholders voted to change the bank’s statute.

MORTGAGES
The average size of mortgage loans in Bulgaria increased by 44 per cent to 44 900 euro in the first half of 2008, data from loan consultants Credit Center showed on July 14. The increase reflected the rising real estate prices, since most mortgages were taken for the purchase of housing.