In the last two years interest rates on deposits in the banking market in Bulgaria have steadily declined, and in 2016 for the first time they have fallen below 1%. October brought a new record in this direction as for the first time in Bulgaria a negative return on deposits was reported, according to money.bg

Recent data from the Bulgarian National Bank (BNB) show that interest on corporate deposits in euro has fallen to minus 0.02% at 0.05% for the previous month and 0.39% for the same period of the previous year. Thus, for the first time, companies will not get a return on their deposits in banks, and vice versa - they will pay financial institutions to store their money. However, interest rates on lev deposits remained positive, although at a record low of 0.09 per cent at 0.10 per cent in the previous month and 0.18 per cent in October 2017.

According to the BNB data for the period under review, yields continued to decline in BGN deposits but rose slightly in those in EUR. In the first case, it stood at 0.17% in October 2018 at 0.18% in the same month of the previous year. Euro deposits rose to 0.21 per cent in October at 0.18 per cent in September this year. As of the end of the tenth month of the year total deposits of the non-governmental sector in Bulgaria amounted to BGN 77,058 billion or amounted to 74,6% of gross domestic product (GDP). They increased by 8.4% on an annual basis. Despite the record low yield, business deposits grew by 12.1% yoy to BGN 24.149 billion at the end of October. Household deposits also increased to BGN 50,102 billion, up 7.5% over the same period in 2017.

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