Business | Interest rates on business loans fell below 4%

© Nadezhda Chipeva, Capital

Banks in Bulgaria already offer business loans at rates below 4%. This shows data on newly granted and renegotiated loans from the Bulgarian National Bank (NBB) at the end of June this year, quoted by Capital.

BGN loans are granted at an average rate of 3.8%, while those in euros – from 3.1%. During the first six months of the year, more than 85% of corporate loans denominated in EUR accounted for more than one million euros.

For business loans traded in BGN, the ratio between loans less than 1 million euro and more than 1 million euros is about 45:55. Keep in mind that levels are averaged and often a one-time effect may have an upward or downward impact – for example, a loan is repaid or renegotiated in one direction

Most Loans Expensive Bulgarian lev are set interest for the first at least 5 years of the repayment period. At the end of June, the interest rate on them was on average 9%. According to BNB data, however, these loans represent less than 1% of approved loans.

For the first six months of the year, banks granted BGN 5.6 billion of new business loans (including old ones). This represents 6% more at the same time last year

of which BGN 3.9 billion was allocated in euros, about BGN 1.7 billion – in Bulgarian currency and just under 30 million of BGN – in US Dollars. Loans in euros, which were worth more than one million euros, are increasing the fastest – they increase by 30% a year and reach BGN 2.3 billion