#Boyan #Stefov #Eurozone #raise #interest #rates #country
We do not envisage any tightening of credit conditions. We expect a calming of the economy, but not turbulence. This is predicted in the studio of the podcast “What money can do” Boyan Stefov, Executive Director and head of “Corporate Banking” at DSK Bank.
The ratio of loans to deposits in Bulgaria is about 70%. With this high liquidity, competition between banks in the market is the driving factor in terms of loan terms. I predict a smooth and very slow rise in interest rates, even after the adoption of the euro, shared the guest and also said that with the accession of Bulgaria to the Eurozone, the requirements for minimum mandatory reserves of the banks will be reduced compared to the current ones, which would free up additional resources available for businesses and households.
The banking sector is ready to switch to the single European currency from January 1, 2025, and the technical steps are going according to plan, commented Mr. Stefov.
Regarding mortgage lending, the guest expressed optimism for the real estate sector and pointed out that Bulgaria remains one of the countries in the EU with the most affordable housing when comparing average incomes to average price per sq.m. Incomes continue to grow, and unemployment is at very low levels, he emphasized.
- What year is ahead for the Bulgarian economy?
- How will the transition to the euro technically happen and what can we expect from the digital euro project?
- Is it a good time to get a mortgage and buy real estate?
Watch the interview with Boyan Stefov, Executive Director and Head of Corporate Banking at DSK Bank.
