Sun, Nov 22 2009

Bulgarian banks press ahead with loan rate increases

Fri, Jun 05 2009 01:51 CET byDnevnik.bg 1168 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

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