Mortgage crediting stirs up, 5% increase expected

The mortgage credit market in our country is reviving and will grow by another 5% over the next two years, according to data of a survey on Bulgarians’ financial status, conducted by UniCredit Bulbank. The bank’s CEO and Management Board Chairman, Levon Hampartzoumian, stated there was no oversaturation of the construction sector and warned that profit margins there will not return to the pre-crisis levels. Nevertheless, “people still need housing”, explained Hampartzoumian.

In his words, unemployment will be rising over the next two or three quarters, partly due to the seasonal character of the labour market and the traditionally slower summer months. According to the bank’s survey, until 2011 Bulgarian households’ assets will be going up more quickly than their liabilities.

This will put an end to the trend from 2000-2007 for a quicker growth of liabilities (54% a year on average), compared to the increase of assets (30% a year on average). 2009 was the first year in which assets were rising more quickly than debts. Overdraft services will increase by 4% until 2011 and at the same time leasing services will drop by 1.8%, and consumer credits – by 0.5%. The share of mortgage loans is expected to go up at the expense of consumer credits.

Text and image photo: klassa.bg

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