Bulgaria banks ponder stricter loans amidst eurozone groundwork

January 29, 2024
1 min read

TLDR: Bulgarian National Bank Governor Dimitar Radev has suggested that household loans may need to be tightened based on the first-quarter results of this year. The country is aiming to curb inflation in order to meet the last remaining condition for joining the eurozone in 2025. Financial experts have warned that high credit growth could be a new source of inflation, leading to the consideration of measures to curb lending. The Bulgarian banking system is currently stable, with low interest rates on loans, but the central bank is exploring options such as a maximum loan amount cap and stricter limits on the personal income-to-loan ratio.

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