Financial and business news from Bulgaria

The people refused consumer loans, saved 593 million in a month

However, does not stop the withdrawal of loans for a new house
Refusal from taking new consumer loans and returning money to banks - these are two of the trends that stand out in the crisis for the coronavirus.

According to BNB data at the end of April, consumer loans are BGN 11.455 billion, with their amount being less by 85 million compared to March and 50 million lower than that in February. This shows that, in the time of the state of emergency, people have ceased to withdraw consumer loans.

But have not given up on the purchase of a home, as mortgage is growing steadily. At the beginning of the year their total amount was BGN 10,833 billion and at the end of April it increased to EUR 11,143 billion. Thus, for four months the Bulgarians have withdrawn a new 310 million leva for the purchase of homes. For April alone, mortgage loans withdrawn are £90m.

On an annual basis, lending continues to grow, but already at a slower pace. At the end of last month, the total amount of all loans increased by 7.8% to BGN 65 billion, with 9.4% annual growth in March. The loans to the non-governmental sector amount to BGN 63.1 billion and decrease by 200 million compared to March 2020.

Total household indebtedness was £24.3bn, making an annual rise of 9.2% at the end of April vs. 9.9 per cent for March.

In April there was a tangible return to people's trust in banks, as there was a significant growth in deposits. In just a month they have grown by BGN 593 million and total households have BGN 56.7 billion, or by 7.6% more compared to April 2019 compared to 7.2% annual growth in March.

In practice in March there was a decrease in deposits - in total they amount to BGN 56.121 billion and in February the amount was BGN 20 million higher. The withdrawal of the money was due to people's worry in March that with the state of emergency being declared they would not have access to their money and many people were then withdrawing from banks amounts of cash to keep it at home.

At the end of April 2020, all business and household deposits reach BGN 85.8 billion and their annual increase was 8.1% vs. 7.8 per cent growth in March.

Money serving turnover increased by 8.5% at 8.1% year-on-year growth in March 2020, while the total amount at the end of April is nearly £104bn, the figures show.

Banks' net domestic assets are BGN 65bn, up 10.5% compared to the same month of 2019.