Ekaterina Kirilova, Head of Marketing and Segments Department, UniCredit Bulbank

One of the main trends in 2012 was the convergence of the interest rates on mortgage loans in BGN and in EUR and the increase in the number of granted mortgage loans in BGN in comparison to such in EUR.

The average amount of mortgage loans fell from BGN 75 thousand in 2011 to BGN 68 thousand last year. This came as a result of the continuing concerns of the people about their financial stability in the following years, as well as the fall in property prices. High unemployment rates and low income levels cause people to be careful and to avoid heavy indebtedness.

In 2012 the average term for the withdrawn mortgage loans remained the same - 22 years. Due to the low income rates in Bulgaria a large number of the customers continue withdrawing their loans for a long term, in order to ease their monthly budget with lower monthly installments.

Last year we saw that the average amount of the withdrawn consumer loans remained in the amount of BGN 12,500, and the average term for which it is being repaid remained the same as well – 8 years.

Despite the difficult year, there was still a minimum growth in mortgage loans compared to 2011.

In view of the stir in the property market, in 2012 there was also a high demand for loans in EUR with a fixed interest rate, which was a new product on the market, followed by the loans with attractive floating interest rates in BGN. The customers preferred the fixed interest rate in EUR in times of economic crisis.

In 2012 deals with mortgage loan-funded properties were made mainly in the regional cities. The fall in the property market was observed mainly in the field of holiday estate, offices and commercial spaces, while the housing market witnessed a revival of buyers’s interest. In 2012 the demand for property in the mid-price segment increased at the expense of the low-price segment. This trend is expected to continue this year as well.

Aligning its crediting policy with the needs of the customer and the competitive economic environment, in 2012 UniCredit Bulbank achieved an increase in market share of up to 15.7% which strengthened its position as a market leader in the field of customer crediting. The bank's market share in loans of individuals and households was 13.3% against an annual market growth of -1.3%. The market share of mortgage loans rose by 0.6% and was in the amount of 17.7% against an annual market growth of -0.3%.

More information for media:

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Phone: + 359 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch