The dynamic events and crises affecting international relations and the global economy have their logical and noticeable economic and consumer implications. The market turmoil caused by the Covid-19 pandemic, the military crisis in Ukraine, the international energy and food crisis and the increasingly tangible recession pose enormous economic and political challenges, the resolution of which will mark the next decade.

Against the background of this complex situation, the Bulgarian National Bank published its Interest Statistics* for the past month /July 2022/, with some indicators maintaining their relative stability, while others point to current and future fluctuations:

The base interest rate (BPR) in July 2022 is 0.00%, and compared to June 2022, it maintains its level. In July 2022, the LEONIA Plus index (index of concluded and executed transactions for providing unsecured overnight deposits in BGN on the interbank market in Bulgaria) increased by 0.06 percentage points (p.p.) to -0.57%. The long-term interest rate for the assessment of the degree of convergence (DLP) in July 2022 is 1.85%, increasing by 0.08 pp compared to June 2022.

Loans

Sector Non-financial enterprises:

In July 2022, the average interest rate on loans up to EUR 1 million contracted in BGN will increase by 0.09 p.p. to 2.89%, and for those above 1 million euros it decreases by 0.17 p.p. to 2.27%. The average interest rate on loans of up to EUR 1 million contracted in EUR decreased by 0.02 p.p. up to 2.28%, and for loans over 1 million euros - with 0.20 p.p. to 2.43%. In July 2022, the average overdraft interest rate in BGN increased by 0.07 p.p. up to 2.33%, and according to the overdraft in euro it falls by 0.06 p.p. to 1.78%.

The volume of new business for loans up to EUR 1 million contracted in BGN decreased by 15.2% (BGN 73.4 million) to BGN 410.7 million, and for loans over EUR 1 million - by 16.1% (BGN 144.9 million BGN) to BGN 757.6 million. The volume of renegotiated loans and refinancing loans in BGN decreased by 26.2% (BGN 159.4 million) to BGN 448.2 million.

The volume of new business for loans up to EUR 1 million contracted in euros fell by 15.7% (BGN 13.3 million) to BGN 71.7 million, and for those over EUR 1 million it increased by 45.9% (BGN 263.4 million). BGN) to BGN 837.8 million. An increase of 55.4% (BGN 219 million) to BGN 614.2 million was observed in the volume of renegotiated loans and refinancing loans in euros.

Sector Households

In July 2022, the average interest rate on consumer loans in BGN

increases by 0.63 pp. up to 8.19%, and the annual cost percentage (APR) on these loans - by 0.66 p.p. to 8.66%. For home loans in BGN, the average interest rate decreased by 0.02 p.p. to 2.47%, and GPR - by 0.07 p.p. to 2.71%. The average interest rate on other loans in BGN increased by 0.05 p.p. to 3.04%. The average interest rate on other loans in BGN for Employers and self-employed persons increased by 0.04 p.p. to 3.03%.

In July 2022, the average interest rate on the overdraft in BGN decreased by 0.45 p.p. up to 14.27%, and in the case of credit card loans, outside the interest-free grace period, in BGN it increases by 0.01 p.p. up to 20.40%.

The volume of new business on consumer loans in BGN decreased by 13.5% (BGN 109.8 million) to BGN 701.8 million, and that of renegotiated loans and refinancing loans - by 7.5% (BGN 9 million) to 110.7 million BGN. For housing loans in BGN, the volume of new business decreased by 12.2% (74.5 million BGN) to 536.6 million BGN, and that of renegotiated loans and refinancing loans increased by 2% (3.1 million BGN) to BGN 155.6 million. The volume of new business for other loans in BGN increased by 27.2% (BGN 6.5 million) to BGN 30.2 million, and that of renegotiated loans and refinancing loans – by 21.2% ( 1.5 million BGN) to 8.5 million BGN. The volume of new business under other loans in BGN to Employers and self-employed persons increased by 18.3% (4.1 million BGN) to 26.6 million BGN.

Deposits

Sector Non-financial enterprises:

In July 2022, compared to June 2022, the average interest rate on deposits with contractual maturity (DDM) in BGN increased by 0.16 p.p. to -0.24%, and for those in euro - by 0.10 p.p. to -0.29%. The average interest rates on overnight deposits in BGN and EUR remain at -0.01%. The volume of new business on deposits with agreed maturity in BGN decreased by 18.8% (BGN 29.5 million) to BGN 127.5 million, and on those in Euro - by 7% (BGN 3.8 million) to 50.9 million. BGN

Sector Households:

In July 2022, the average interest rate on deposits with agreed maturity in BGN increased by 0.03 p.p. up to 0.13%, and according to those in euro it falls by 0.01 p.p. to 0.13%. The average interest rates on overnight deposits in BGN and EUR remain at 0.00%.

The average interest rate on deposits agreed for use after notice in BGN changed slightly to 0.12%, and on those in Euro remained at the level of 0.17%.

The volume of new business on deposits with agreed maturity in BGN increased by 3.2% (3.7 million BGN) to BGN 117.3 million, and for deposits with agreed maturity in euros - by 32.8% (BGN 25.5 million) to BGN 103.3 million.

* Data of the Bulgarian National Bank, Interest statistics - July 2022. Press release.