The movement of interest rates on loans continues to be unsustainable with monthly fluctuations up or down. While in July, BNB statistics reported that interest rates on most loans increase, in August the situation is exactly the opposite.
“The average interest rate on loans up to EUR 1 million agreed in BGN decreased by 0.10 percentage points to 2.94%, and on those over EUR 1 million – by 0.38 percentage points to 2.19%. % in August 2021. The average interest rate on loans up to EUR 1 million contracted in EUR decreased by 0.30 percentage points to 2.41%, and on loans over EUR 1 million – by 0.61%. In August 2021, the average interest rate on overdrafts in BGN decreased by 0.04 percentage points to 2.58%, and on overdrafts in EUR remained at 1.95%. “, the Central Bank announced.
August reduction of interest rates on business loans in most cases it compensates at times their July increase. We remind you that according to the BNB: “The average interest rate on loans up to EUR 1 million agreed in BGN increased by 0.02 percentage points to 3.04%, and on those over EUR 1 million – by 0, 64 percentage points to 2.76% in July 2021. The average interest rate on loans up to EUR 1 million contracted in EUR increased by 0.15 percentage points to 2.72%, and on loans over EUR 1 million. – from 0.09 percentage points to 2.79 percent “.
Interest rates on loans continue to dance
The reduction in loans to households seems to be coming to an end
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The same monthly fluctuations are observed and on loans to citizens. “In August 2021 the average interest rate on consumer loans in BGN decreased by 0.04 percentage points to 8.40%, and the annual interest rate (APR) on these loans – by 0.11 percentage points. In the case of housing loans in BGN, the average interest rate decreased by 0.03 percentage points to 2.70%, and the APR on these loans – by 0.03 percentage points to 2.98% “, reads the BNB statement. Just a month earlier, the news on consumer loans they had a radically opposite sign. At that time, the BNB announced that in July 2021 the average interest rate on consumer loans in BGN increased by 0.62 percentage points. up to 8.43%, and the annual percentage rate of charge (APR) on these loans – by 0.67 percentage points. to 9.06 percent.
Only in housing loans the tendency to reduce the price for customers seems unchanged. And in July there was a decrease, albeit less than in August. “For housing loans in BGN, the average interest rate decreased by 0.01 percentage points to 2.73%, and the APR on these loans remained unchanged at 3.01%,” the BNB said in a July statement.
In general, home loans are a very hot spot throughout the risky credit profile of banks. It is no coincidence that the BNB announced that it will double the countercyclical capital buffer – from 0, 5% to 1% precisely because of the growth in this type of lending. It is true that this higher buffer should not come into force until October 2022, and if there is a cooling in housing loans by then, its introduction can be canceled or its increase can be with a smaller step.
