Bulgarians Happy to Draw Bigger Loans, Report Shows

Business | March 5, 2007, Monday // 00:00
Bulgaria: Bulgarians Happy to Draw Bigger Loans, Report Shows Credit Centre CEO, Tihomir Toshev, presents the report's forecasts. Photo by Yuliana Nikolova (Sofia Photo Agency)

Bulgarian consumers remain hungry for loans and are willing to draw larger sums, a report by lending consultants Credit Centre showed on Monday.

The average size of loans drawn in Bulgaria, according to the reports data, rose by nearly one fifth to EUR 31,300 at the end of February, compared to EUR 26,000 in December last year.

The report also claims the share of loans over BGN 100,000 (roughly EUR 50,000), rose to 18% in February, compared to 15% in December and 6% at the beginning of 2006.

The trend is likely to continue this year, as banks try to woo new clients with lower interest rates, fewer conditions for drawing a loan and a higher variety of lending offers.

Initial expectations for this year forecast 40-50% credit growth this year, coupled with an 18-22% increase in the average size of loans. Credit Centre consultants now believe the actual figures will surpass the forecasts, given the strong start to the year.

Credit Centre is a member of Bulgaria's AG Capital holding company, a leading real estate and advisory group in the country.

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