site.btaHousing Loans in Bulgaria Continue to Grow at Rapid Pace, BNB Data

Housing loans in Bulgaria continue to grow at a rapid pace. Over the past 12 months, the amount of bank loans for housing has increased by BGN 4.854 billion to a total of BGN 23.617 billion at the end of September, according to data from the Bulgarian National Bank (BNB). This represents an annual growth of 25.9%. By comparison, the amount of housing loans stood at BGN 18.763 billion at the end of September 2023. The rate of growth this September is strengthening as in the previous month of August the annual growth was 25.5%.

The measures imposed by the BNB on real estate-backed loans, prompted by the rapid growth rates in this segment in recent years, came into effect from October 1 this year.

Consumer loans amounted to BGN 18.968 billion and compared to September 2023 they grew by 15% (14.7 % annual growth in August 2024). Consumer loans grew by 15% year-on-year in September to a total of BGN 18.968 billion, with lending in this segment also strengthening its growth rate after an annual growth of 14.7% in the previous month.

Bank loans to non-financial businesses reached BGN 44.387 billion at the end of September, growing by 8.2% year-on-year. The pace of growth is slowing down as in August the acceleration was 9.5% year-on-year.

On a year-on-year basis, other loans grew by 13.2% (10.9% annual increase in August 2024) to BGN 448.8 million.

Loans to sole proprietorships and partnerships without legal status increased annually by 14.7% (11% annual growth in August 2024) reaching BGN 512.8 million.

Loans to financial corporations were EUR 8.179 billion (4.2% of GDP) at the end of September 2024. Compared to September 2023, they increased by 12% (12.4 annual increase in August 2024).

At the end of September 2024, claims on loans to the non-government sector amounted to BGN 99.375 billion. The amount grew by 13.6% year-on-year (14.1% annual growth a month earlier). Loans to the non-governmental sector account for 50.7% of the country's GDP.

The change of loans to the non-government sector was influenced also by net sales of loans by Other monetary financial institutions (Other MFIs) - their volume for the last twelve months was BGN 143 million. On an annual basis, loans sold by Other MFIs were BGN 143 million (of which BGN 0.4 million in September 2024), while there were no loans repurchases for the last twelve months , the BNB said.