Financial crunch

In the recent months the banks’ advertisements of high interest rates on deposits are giving way to an increasing number of ads promoting mortgage loans again.

The first time steps towards lower interest rates on mortgages was in late 2009, although there were only a few scattered cases. Since the start of 2010, however, the trend has grown stronger, with several lenders launching big campaigns to promote mortgages, with more expected to join in soon. Read more about: Mortgage loans advertised again by Bulgarian banks

Credit rating agency Moody’s Investors Service said on March 8 that the credit outlook for the Bulgarian banking system was negative, primarily reflecting the adverse impact of the domestic economic recession on the credit quality and net profits of the country’s banks.

Moody’s said that the opinion was not a projection of rating changes, rather the credit agency’s view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. Read more about: Moody’s: Negative outlook for Bulgarian banks

Bulgarians affected by the financial crunch have doubled over the past year and therefore expect a noticeable change in their consumption habits. This shows a survey among 800 people in Bulgaria. Approximately 60% of participants in the survey conducted in early 2010, say they feel tangible impact of the crisis on their lifestyles. Respectively the expectations out of this crisis remain pessimistic. One in five believes that the outcome will be the end of 2010 and in 2011, however the same percent of people doesn’t have a clear vision when it will happen. Read more about: Bulgarians affected by the financial crunch