According to the latest statistics of the Bulgarian National Bank (BNB), at the end of August, the loans granted by banks to companies and households in Bulgaria increased by 14.1% year-on-year and reached BGN 98.368 billion. A 13.9% year-on-year increase was recorded in July, equal to BGN 97.507 billion.
Loans to the non-governmental sector amounted to nearly BGN 98.4 billion, 50.2 percent of the Gross Domestic Product (GDP). This is an increase of 14.1 percent from August last year.
Loans to firms also rose in August, 9.5 percent year-on-year. They thus reached BGN 46.597 billion. This compares with an 8.7% y-o-y increase in July.
Loans granted by banks to households at the end of August amounted to more than BGN 43.7 billion, representing 22.3% of GDP. Compared to August 2023, they increased by 19.7%, compared to a 19.6% annual increase in July 2024.
Mortgage loans granted by banks also continue to increase, according to BNB statistics. At the end of August 2024, housing loans stood at BGN 23.203 billion. This represents a year-on-year increase from 25.5%. An increase was also registered every month compared to July when mortgage loans increased by 25.1%.
In housing lending, this has been a trend since the beginning of the year. In June, an increase of 24.8% was recorded, and in May – by 24.4%. Bank loans secured by real estate increased by 23.9% in April, 20.5% in March, 17.9% in February and 16.5% in January.
Growth was also recorded in consumer lending, although far more modest. At the end of August, consumer loans amounted to nearly BGN 18.8 billion, an increase of 14.7% compared to the same month of the previous year.
Other loans grew by 10.9% y-o-y against 10.7% y-o-y growth in July. Thus, they reached BGN 443.1 million.
Loans to Employers and the Self-Employed increased by 11% y-o-y in August to BGN 493.7 million. In July, the increase was 10.9% y-o-y.
BNB data show that loans granted to financial enterprises amounted to BGN 8.030 billion at the end of August. Compared to the levels of the same month of the previous year, they increased by 12.4%. In July, an increase of 16.7% year-on-year was calculated.
In August, the monetary aggregate M3 increased by 8.5% year-on-year, compared with a 9.3% annual increase in July. M3 is the broadest measure of the money supply. It measures currency in circulation, amounts in current accounts, deposits with maturities of up to 2 years, deposits held for use after up to three months’ notice, and negotiable instruments (debt securities issued up to 2 years, money market fund shares/units, and repurchase agreements).
At the end of last month, broad money stood at 161.655 billion against 160.524 billion as on July. Their most rapidly liquid component, the M1 money aggregate, which includes non-bank money, non-term deposits of firms, and current deposits of households, increased by 8.4% y-o-y last month. Growth in July was 9.5% y/y.
At the same time, the data showed that deposits of the non-governmental sector amounted to nearly 132.9 billion leva, equivalent to 67.8% of GDP. On an annual basis, this means an increase of 9.1%. In July, the deposit growth was reported at 9.9%.
The financial regulator reports that at the end of August, savings of businesses and households amounted to 132.890 billion leva, which is 67.8% of GDP. The year-on-year increase was 9.1%, compared with a 9.9% annual rise in July.
Household deposits stood at BGN 84.631 billion at the end of August, up 12.1% year-on-year (11.9% annual growth in July 2024).
Deposits of companies at the end of August amounted to BGN 44.757 billion. This is an increase of 6.2% within a year. The year-on-year increase in July amounted to 8.9%.
On the other hand, Deposits of financial enterprises decreased in August by 16.3% yoy, with their total value amounting to BGN 3.502 billion. In July, the decrease was 16.9% yoy.
Net domestic assets stood at BGN 110.602 billion at the end of August. They increased by 21.6% year-on-year. In July, the increase was 23.1% year-on-year.
Net foreign assets at the end of August were BGN 85.275 billion compared to BGN 84.296 billion at the end of July. On a year-on-year basis, they declined by 0.8, and July ended with a 0.7% annual decline.