The credit market in Bulgaria has continued its dynamic development in the first six months of 2007 driven by mortgage loans, says a Credit Centre survey.

The 40 per cent growth experienced by the sector was attributed to better conditions for mortgage loans; interest rates have decreased from 7.50 per cent to about 6.15 per cent.

A growing number of banks have been offering a zero per cent tax for earlier loan pay-off.

As a result of stiff competition between Bulgarian banks, some have launched a number of promotions concerning the other credit taxes and even done away with some taxes.

Bank funding of mortgage deals also increased in 2007. Some banks offered a 100 per cent funding to their customers. Debt acquittal period has been prolonged reaching 35 years in some banks.

The largest number of credits were given to households with a monthly income up to 1000 leva, 59 per cent of all credits.

Households with monthly income up to 500 leva make up 29 per cent of credits. The smallest number of credits was granted to households with monthly income of 2 000 and over 2 000 leva.