Household Deposits in Bulgaria Up 4.6% Y/Y in Feb 2015

Business » FINANCE | March 25, 2015, Wednesday // 12:36
Bulgaria: Household Deposits in Bulgaria Up 4.6% Y/Y in Feb 2015 Bulgarian National Bank headquarters, photo by BGNES

At the end of February 2015, deposits of the non-government sector stood at BGN 58.984 billion (70.7% of GDP), increasing annually by 2.5% (2.4% annual growth in January 2015), according to the Bulgarian National Bank (BNB).

Deposits of Non-financial corporations were BGN 15.464 billion (18.5% of GDP) at the end of February 2015. Compared to the same month of the previous year they increased by 0.4% (0.8% annual growth in January 2015).

Deposits of financial corporations decreased by 10.2% annually in February 2015 (10.5% annual decline in January 2015). At the end of the month they reached BGN 3.307 billion (4% of GDP).

Deposits of Households and Non-profit institutions serving households (NPISHs) amounted to BGN 40.212 billion (48.2% of GDP) at the end of February 2015, increasing by 4.6% compared to the same month of 2014 (4.3% annual growth in January 2015).

Net domestic assets were BGN 51.893 billion at the end of February 2015. They decreased by 8.9% compared to the same month of 2014 (8% annual decline in January 2015). At the end of the month their basic component – domestic credit – was BGN 53.842 billion and decreased by 7.7% compared to February 2014 (7.1% annual decline in January 2015).

In February 2015 claims on the non-government sector declined by 8.6% annually (7.8% annual decrease in January 2015) reaching BGN 51.006 billion.

The annual decline was influenced by the exclusion of Corporate Commercial Bank (KTB) from the monetary statistics since November 2014 (if the KTB data are excluded from those for February 2014, the annual growth of claims on the non-government sector would be 0.7%).

At the end of February 2015, claims on loans to the non-government sector amounted to BGN 49.775 billion (59.6% of GDP) compared to BGN 49.909 billion (59.8% of GDP) at the end of January 2015. They decreased annually by 9% in February 2015 (8.4% annual decline in January 2015).

The annual decrease was influenced by the exclusion of KTB from the monetary statistics since November 2014 (if the KTB data are excluded from those for February 2014, the decline of claims on loans to the non-government sector would be 0.1% on an annual basis).

The change of loans to the non-government sector was influenced by net sales of loans by Other monetary financial institutions (Other MFIs) - their volume for the last twelve months was BGN 87.4 million.

On an annual basis, loans sold by Other MFIs were BGN 116.6 million (there were no sales of loans in February 2015), while the amount of repurchased loans was BGN 29.2 million (of which BGN 2.7 million in February 2015).

In February 2015, loans to Non-financial corporations decreased by 13.1% annually (11.9% annual decline in January 2015) and at the end of the month amounted to BGN 30.618 billion (36.7% of GDP).

Loans to Households and NPISHs were BGN 18.174 billion (21.8% of GDP) at the end of February 2015. They decreased by 2% compared to the same month of 2014 (2% annual decline in January 2015).

At the end of February 2015 loans for house purchases were BGN 8.687 billion and decreased by 1.4% annually (1.3% annual decline in January 2015).

Consumer loans amounted to BGN 7.310 billion and compared to February 2014 they decreased by 1% (1.1% annual decline in January 2015). On an annual basis other loans decreased by 16.6% (18.4% annual decline in January 2015) and reached BGN 693 million.

Loans granted to financial corporations were BGN 982.5 million at the end of February 2015 (1.2% of GDP). Compared to February 2014, they increased by 1.7% (5% annual decline in January 2015).

Net foreign assets amounted to BGN 35.227 billion at the end of the reporting month compared to BGN 35.127 billion at the end of January 2015. They increased by 25.8% on an annual basis compared to 24.1% annual growth in January 2015.

At the end of February 2015 foreign assets increased by 15.9% annually (14.5% annual growth in January 2015), reaching BGN 47.716 billion.

Foreign liabilities amounted to BGN 12.489 billion, marking a 5% annual decline (5.9% annual decrease in January 2015).

In February 2015 broad money (monetary aggregate M32) increased annually by 2% compared to 2% annual growth in January 2015. At the end of February 2015 M3 was BGN 68.978 billion (82.7% of GDP3) compared to BGN 69.007 billion (82.7% of GDP) in January 2015. Its most liquid component – monetary aggregate M14 – increased by 15.1% annually in February 2015 (14.8% annual growth in January 2015).

Due to the revocation of the banking license of Corporate Commercial Bank (KTB), the bank has been excluded as a reporting agent from the monetary statistics data since November 2014.

In accordance with the ECB’s requirements in the statistics area the bank has been excluded from the sector Other monetary financial institutions (S.122 according to ESA’95) and reclassified into institutional sector Other financial intermediaries, except insurance corporations and pension funds (S.123 according to ESA’95).

As a result, KTB’s assets and liabilities have been removed from the balance sheet of Other monetary financial institutions in November 2014.

Therefore, the annual change in the credit indicators since November 2014 reflects the exclusion of KTB from the monetary statistics, while the annual change in the monetary and deposit indicators has also been influenced by the payment of guaranteed deposits in KTB since 4 December 2014.

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Tags: Bulgarian National Bank, BNB, household deposits

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