Bulgarian National Bank (BNB) predicts the increase of interest rates in the euro zone would affect Bulgaria's market.
The process already has influence on credits with floating interest rates, said Emilia Milanova, deputy governor in charge of the banking supervision department at BNB. The tendency is likely to spread to credits with fixed interest rates.
According to BNB experts, restrictions on bank crediting in Bulgaria will gradually be removed. By the end of the year the bank would begin the technical preparations for the country's Exchange Rate Mechanism II (ERM II) membership, Banker newspaper reported. The aim of the organisation is to prepare Bulgaria for the acceptance of the euro in 2010.
During the annual meeting of the Association of Commercial Banks, held on May 5, Deputy Energy and Economy Minister Nina Radeva said that the state would help EU fund administration by creating a national development bank. The new organisation would not compete with other credit institutions, experts said.
Two weeks ago BNB presented its annual report on the banking sector condition in 2005. The report shows the credit expansion continues to cause problems to the sector, Banker reported. According to BNB, the number of credits has increased to 33 per cent or over 4.4 million leva.
The credit expansion affected the stability of several banks in the country, which forced BNB to impose restrictions. The names of the banks were not mentioned specifically in BNB's report, but their problems were listed as a reason why credit restrictions should not be removed.
The process already has influence on credits with floating interest rates, said Emilia Milanova, deputy governor in charge of the banking supervision department at BNB. The tendency is likely to spread to credits with fixed interest rates.
According to BNB experts, restrictions on bank crediting in Bulgaria will gradually be removed. By the end of the year the bank would begin the technical preparations for the country's Exchange Rate Mechanism II (ERM II) membership, Banker newspaper reported. The aim of the organisation is to prepare Bulgaria for the acceptance of the euro in 2010.
During the annual meeting of the Association of Commercial Banks, held on May 5, Deputy Energy and Economy Minister Nina Radeva said that the state would help EU fund administration by creating a national development bank. The new organisation would not compete with other credit institutions, experts said.
Two weeks ago BNB presented its annual report on the banking sector condition in 2005. The report shows the credit expansion continues to cause problems to the sector, Banker reported. According to BNB, the number of credits has increased to 33 per cent or over 4.4 million leva.
The credit expansion affected the stability of several banks in the country, which forced BNB to impose restrictions. The names of the banks were not mentioned specifically in BNB's report, but their problems were listed as a reason why credit restrictions should not be removed.
