Bulgarian National Bank

In the second quarter of the year, the housing price index in Bulgaria increased by 15.1% year-on-year, slightly lower than the 16% rise in the first quarter. Both new homes and existing properties saw price increases, with new homes rising by 15.6% and existing ones by 14.8%.

For the first time, the money circulation in Bulgaria has surpassed 30 billion leva. According to the Bulgarian National Bank's (BNB) publication "Overview of the Issue and Cash Activity," as reported by BTA, the total value of banknotes and coins in circulation reached BGN 30 billion and 356 million as of the end of September.

Bulgarians continue to embrace the use of coins, as evidenced by the latest figures from the Bulgarian National Bank (BNB). The total number of coins in circulation reached 3,315,164,574 units by the end of September, showing growth both compared to August and on an annual basis.

Housing loans in Bulgaria have continued to grow rapidly. Over the past 12 months, the total amount of bank loans for housing has increased by BGN 4.85 billion, reaching BGN 23.617 billion by the end of September, according to data from the Bulgarian National Bank (BNB).

Bulgaria's trade deficit in August fell by over 30% year-on-year, reaching 287.8 million euros compared to 413.8 million euros during the same month last year.

At the end of July 2024, Bulgaria's gross external debt reached 43.69 billion euros, or 43.6% of the country's GDP, marking an increase of 1.23 billion euros compared to the same period in the previous year, when the debt stood at 42.46 billion euros, or 45.2% of GDP. This is according to data from the Bulgarian National Bank.

Starting today, new restrictions imposed by the Bulgarian National Bank (BNB) on housing loans will take effect. Under these regulations, commercial banks are prohibited from lending more than 85% of the property's market value.

According to the Bulgarian National Bank (BNB), the expansion of mortgage loans continues as banks in Bulgaria report an increase in housing credit. As of the end of August 2024, outstanding housing loans reached 23 billion, 203 million leva, reflecting an annual growth of 25.5%. This marks an increase from July, when mortgage loans rose by 25.1%.

In the first half of 2024, a total of 8,533 consumers secured housing or mortgage loans through credit intermediaries. Among these, 8,413 contracts were signed with banks, while 120 were arranged with financial institutions registered under Article 3a of the Law on Credit Institutions, as reported by the Bulgarian National Bank (BNB).

Bulgaria is planning to transition from the leva (BGN) to the euro (EUR) in just over a year as part of its strategy to enter the Eurozone. While the exact date remains uncertain, the implications of this shift are clear. The newly adopted euro law outlines the process and addresses potential consequences of further delaying Eurozone membership.