Analyst Warns of Lending Expansion Pitfalls
Against the backdrop of lasting political uncertainty, a stalled public investment programme and weak inflow of foreign private capital, the accelerating growth of bank lending to households in Bulgaria is clearly visible. Insistent assurances that it does not pose any risks, that Bulgarians are generally not deeply indebted, and that growing consumer incomes explain the rise in real estate prices, should not hide from view the macroeconomic dimensions of these developments. Loans are a fuel which plays an ever-growing role in propelling the national housing market and the construction sector, and indirectly driving more and more economic activities where consumer behaviour is determined by borrowing from banks, Institute for Market Economics (IME) chief economist Latchezar Bogdanov says in an analysis published on the IME website, CE Report quotes BTA
More details at the link
