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Bulgaria mortgage volumes pull level with consumer loans
The size of the Bulgarian banks' mortgage portfolio has now equaled the consumer credits on their loan books, shows data of the central bank by the end of June 2008. Mortgage loans topped 6.765 bln levs by the mid-year mark versus 6.802 bln levs in consumer loans. The share of mortgages in total household loans is up to 41.6% from 25.8% three years ago. The mortgage lending has been outpacing all other banking segments, posting end-June growth rates of 72.4% and 74.6% in 2006 and 2007. That momentum subsided somewhat to 64% by the end of 2007 and then further to 53% by mid-2008. The consumer loan share in the banks' retail exposures stood at 41.8% at end-June versus 56.3% three years earlier. The segment grew by year-on-year margins of 23.3% and 17.1% by end-June 2006 and 2007, respectively. Consumer lending increased by 47.3% year-on-year in the first half of 2008. The central bank attributed the robust household lending market to positive trends in employment and income growth. Mortgage lending is expected to slacken off as higher rates deter borrowers. The central bank expects domestic credit growth to slow to around 40% by the end of 2008.Source: http://news.dnevnik.bg/