President Hesitant About FinMin’s Proposal for Cheaper Loans

President Hesitant About FinMin’s Proposal for Cheaper Loans

President Rossen Plevneliev declined to come up with a stand on recent proposals by the finance minister about making bank loans cheaper and interest rates more predictable until they are worked out in detail and supported by reasoning, his press office said.

"Bank rates in Bulgaria can hardly be reduced by administrative measures because this depends on the conditions of the economic environment," Plevneliev said Friday after a meeting with the central bank's governing board, as quoted by his press centre.

Any ideas for interest cuts should be well-grounded and put to a discussion, according to Plevneliev.

Last week finance minister Simeon Dyankov proposed that the banks be made to use a common basis when calculating their interest rates, whether the Euribor or the local Sofibor, and that bank service charges be shared between the borrower and the bank, as well as that loan regulations begin to apply to all loans, including loans of less than 400 levs.

The package is to be discussed with the Association of Bulgarian Banks before the amendments are submitted to Parliament.

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