site.btaCentral Bank Reports Increase in Bank Interest Rates in November

The Bulgarian National Bank (BNB) reported an increase in interest rates in November.

Loans

In November 2022, the average interest rate on loans to the non-financial corporations sector up to EUR 1 million agreed in BGN increased by 0.14 percentage points (ppt) to 3.20%, and the average interest rate on loans over EUR 1 million rose by 0.23 ppt to 2.65%. The average interest rate on loans up to EUR 1 million agreed in EUR rose by 0.03 pp to 3.43% and that on loans over EUR 1 million went up by 0.18 ppt to 3.70%. In November 2022, the average interest rate on BGN overdraft increased by 0.11 ppt to 2.57%, and that on EUR overdraft by 0.41 ppt to 3.09%, the BNB said.

The new business volume on loans up to EUR 1 million agreed in BGN increased by 7.3% (BGN 27 million) to BGN 398.8 million, and that on loans over EUR 1 million rose by 17.6% (BGN 93.1 million) to BGN 622.4 million. The volume of renegotiated loans and loans for refinancing agreed in BGN rose by 14.5% (BGN 52.3 million) to BGN 412.8 million. The new business volume on loans up to EUR 1 million agreed in EUR increased by 13.6% (BGN 6.7 million) to BGN 56 million, and that on loans over EUR 1 million went up by 29.4% (BGN 172.8 million) to BGN 759.9 million. The volume of renegotiated loans and loans for refinancing agreed in EUR decreased by 49.1% (BGN 224.1 million) to BGN 232.7 million.

In November 2022, the average interest rate on BGN consumer loans increased by 0.43 ppt to 8.79%, and the Annual Percentage Rate of Charge (APRC) on these loans rose by 0.44 ppt to 9.29%. The average interest rate on BGN loans for house purchases rose by 0.07 ppt to 2.55% and the respective APRC was up by 0.09 ppt to 2.81%. The average interest rate on BGN other loans increased by 0.47 ppt to 3.46%. The average interest rate on BGN other loans to Sole Proprietors rose by 0.51 ppt to 3.34%. In November 2022, the average interest rate on BGN overdraft increased by 0.10 ppt to 14.34%, while that on BGN extended credit card credit decreased by 0.05 ppt to 20.30%.

Deposits

In November 2022 compared to October 2022, the average interest rate on BGN deposits of businesses with agreed maturity increased by 0.13 ppt to 0.51%, while that on EUR deposits with agreed maturity remained unchanged at 0.37%. The average interest rate on BGN overnight deposits remained unchanged at 0.00%, while that on EUR overnight deposits decreased insignificantly to 0.00%.

The new business volume on BGN deposits with agreed maturity increased by 326.9% (BGN 296.3 million) to BGN 387 million, and that on EUR deposits with agreed maturity rose by 807.8% (BGN 196.1 million) to BGN 220.4 million.

In November 2022, the average interest rate on BGN deposits with agreed maturity remained unchanged at 0.37%, while that on EUR deposits with agreed maturity increased by 0.38 ppt to 0.86%. The average interest rate on BGN overnight deposits decreased insignificantly to 0.00%, while that on EUR overnight deposits remained unchanged at 0.01%.

The average interest rate on BGN deposits redeemable at notice declined by 0.01 ppt to 0.11%, while that on EUR deposits redeemable at notice remained unchanged at 0.16%.

The volume of new business on BGN deposits with agreed maturity increased by 27.6% (BGN 33.8 million) to BGN 156.5 million, and that on EUR deposits with agreed maturity rose by 117.9% (BGN 90.6 million) to BGN 167.5 million.