Domestic lending volumes have once again shot up, rebounding to levels last seen in December 2007, data released by the Bulgarian National Bank for the month of June showed.

The local banks added just over 1.852 billion leva to their credit portfolios in June, compared with 1.858 billion in December 2007. At end-June, the credit portfolio of Bulgarian banks stood at 44.6 billion leva, or 69.4 per cent of the nation's gross domestic product.

Some 70 per cent of the new loans, worth 1.3 billion leva, went to corporate clients as local companies continue to borrow briskly. Corporate exposures topped 27.7 bln levs at the end of the first half.

Households took out loans worth 454 million leva in June and now have borrowed 16.3 billion leva from banks.

End-June credit growth was clocked at 53.5 per cent, slightly down on the May rate of 55.5 per cent. Corporate lending growth slowed to 55.5 per cent in June versus 59.3 per cent in May. Household credit growth was virtually unchanged month-on-month at 48.9 per cent.

Overall year-on-year credit growth continued to decelerate compared to the 63.7 per cent rate recorded in December.