4 mln levs is avg size of loans borrowed by major business customers

Major corporate customers borrow around 4 mln levs on average from Bulgarian banks, shows end-March data released by the central bank.

The number of companies that have taken out a loan bigger than 1 mln levs increased by 1383 in the past year to 4,191.  This group of customers has borrowed 3.9% of all corporate loans in terms of volume and 69% in terms of value (16.8 bln levs).

The end-March corporate loan portfolio of the local banks stood at 24.5 bln levs.  The volume of loans exceeding 1 mln levs rose 93.6% over the past year.

The cost of business loans is increasing at a rate faster than that of household loans.  The average rate on new business loans of up to 1 mln levs extended in May was 10.63%, up 1.13 percentage points year-on-year.  The rate increase on business loans exceeding 1 mln levs was 0.98 percentage points to 9.31%.

The cost of consumer loans edged up 0.96 percentage points year-on-year to 10.77% while the rate on mortgage loans is up 0.33 percentage points to 8.81%.