Tihomir Toshev: Interest Rates Will Continue to Fall in 2016; Investments in Real Estate Properties in Bulgaria’s Big Cities Become More Attractive

Tihomir Toshev: Interest Rates Will Continue to Fall in 2016; Investments in Real Estate Properties in Bulgaria’s Big Cities Become More Attractive

In 2016 interest rates in Bulgaria will continue to fall. The interests on bank deposits have almost reached their bottom. These interest rates will see an insignificant decrease and will remain between 0.5% and 1% by end 2016, credit expert Tihomir Toshev told Radio Bulgaria. The interest rates on bank deposits in the European Union fluctuate between 0% and 1%, and the lowest ones are offered in Lithuania, Slovakia, The Czech Republic and Estonia -between 0% and 0.1%. In Tihomir Toshev’s view, the decrease of the interest rates on credits will slow down this year, because in 2015 these rates dwindled significantly between 1% and 1.25%:
“I expect that the interest on mortgage loans, which at the end of 2015 fluctuated between 4.8% and 5.75%, will vary from 4.25% and 5.25% by year end. The interest on consumer loans also fell to 6%-10.5%. According to my estimates, at the end of 2016 these rates will range between 6%-9.5%. With regard to the company credits, the banks will offer new and more-attractive financial products to the local business. The interests for corporate clients will fluctuate between 3.5% and 5.5% at the end of 2016.”

BNR

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