The BNB has taken measures regarding mortgage lending. What potential risks does the credit market face in the foreseeable future? Is there a real danger of a collapse of the property market in our country?
Let me stress that this is a potential risk arising from the growth of mortgage lending, not a real problem at the moment. Our assessment is based on an in-depth analysis that we have made public. It shows that at this stage it is necessary to create a formal framework for assessing potential risk through supervisory monitoring and reporting of certain mandatory indicators for banks, something we did without still establishing firm limits. However, there should be no doubt that we are prepared to take further macroprudential steps, including preventive, in indications that the potential risk may materialise.
The central banĸa of Bulgaria always carefully monitors the situation in the country. Are there any alarming symptoms?
Global and regional risks, including the war in Ukraine and the crisis in the Middle East, create uncertainty, but overall we expect economic growth in the country to remain firmly in positive territory this year and next and that is good news.
