The growth of loans taken out for the purchase of a home is twice as large as that of deposits in banks, according to BNB data. This shows that despite the increase in interest rates on loans, people still prefer to invest their money in real estate rather than in a deposit. The reason is the still low interest rates on deposits, as well as high inflation, which melts away savings.
At the end of August 2023, the deposits of the non-governmental sector amounted to BGN 121.811 billion (65.2% of GDP), and their annual increase was 10.4%. the savings of companies are BGN 42.147 billion and increased by 11.2% for the year (13.2% annual increase in July 2023).
Households kept BGN 75.485 billion on deposit in banks at the end of August, with the amount increasing by 9.8% compared to the same month of 2022 and reporting a decline compared to the growth in July - 9.9%.
Corporate loans grew by 6.1% on an annual basis in August 2023 (7.2% annual increase in July 2023) and reached BGN 42.545 billion at the end of the month.
How they cheat us with the interest on loans
Household loans are BGN 36.531 billion, and compared to the same month of 2022, they increased by 14.2%.
The withdrawn loans for housing are increasing and they have already reached BGN 18.490 billion, increasing on an annual basis by 18.7% (18.3% annual increase in July 2023)