With the record low-interest rate on the Bulgarian banking market, lending is growing towards the end of the first half of 2019. Despite the lower yields on deposits, they are also increasing towards the end of July, according to the Bulgarian National Bank (BNB). Since the beginning of the year, total household loans increased by BGN 1.050 billion or 5.04% to BGN 22.985 billion at the level of BGN 21.882 billion as of January. Compared to July the previous year, their increase is 8.7 percent. In particular, mortgage loans increased by BGN 710 million or 6.72% to a total amount of BGN 11.275 billion. Compared to the end of January, they amount to BGN 10.656 billion. In comparison with July 2018, the growth is 12.3 percent.

On the other hand, household deposits amounted to BGN 53.3 billion at the end of July. Since January, they have increased by BGN 1.724 billion or 3.33%. Compared to July 2018, they are up 8.1 percent. BNB data show that as of the end of last month the total deposits of the non-governmental sector amounted to BGN 81.015 billion or equal to 70% of gross domestic product (GDP). They are up 7.7 percent year on year. Of these, non-financial corporations amount to BGN 24.144 billion. Loans to the non-governmental sector amounted to BGN 59.860 billion at the end of the first half of the year. They are up 5.8% compared to the same month of 2018.

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