- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
submited on 09.06.2010 in category Macroeconomic developments
Financial assets of the population increased by 10% y-o-y thanks to the increased propensity of households to save and accrued interest due on bank deposits. Parallel to the accumulation of new savings Bulgarians paid 30% of their short-term debt to leasing companies and credit companies.
Almost 68% of household savings are invested with commercial banks in the form of deposits. In the first quarter of 2010 households received income from interest on deposits amounting to BGN 317 million. The gradual decline of interest rates on deposits, combined with rising inflation, will reduce the incentives for saving.
Housing continued to depreciate, although the rate of decline was slowing down.
Housing loans increased by 7% in April 2010 compared to to April 2009, as interest on mortgage loans in euro decreased significantly - by 1 percentage point over the last six months. Moreover, the differential between interest rates on BGN loans and interest rates on euro loans has significantly decreased in the first half of 2010
Average monthly salary is sufficient to purchase 0.65 square meters of living space. Homes became more affordable to households whose incomes were not affected by the impact of the crisis.