Credit Growth Slows Down In January

The total volume of the bank loans extended in Bulgaria in January 2008 amounted to 530 million leva. The figure represents a nearly six-fold decrease compared to December 2007, when the volume of the loans stood at 3.38 billion leva. The growth of the business loans is slowing down significantly. Business loans growth marked a 71.5-per cent year on year increase in December 2007. The figure dropped to 69.9 per cent in January 2008.

The credit growth to the non-government sector slowed to 61.8 per cent year on year as of end-January as compared to 62.5 per cent at end-December, according to the monetary survey of the central bank. The increase in credits denominated in foreign currency also moderated to 77.5 per cent annual rise in January, down by 2 points on a monthly basis, while loans in domestic currency retained its growth of some 48 per cent year on year. The stock of all credits reached 17.4 billion euro or 55 per cent of the full-year GDP projection of the finance ministry. Money supply measured by the M3 aggregate grew by 30.9 per cent year on year at end-January to 67.4 per cent of GDP.

The credit growth to the non-government sector slowed to 61.8 per cent year on year as of end-January as compared to 62.5 per cent at end-December, according to the monetary survey of the central bank.