Are interest rates on loans going down, and on deposits going up?

Interest rates on loans will start to decline by the end of the year, while those on deposits will increase. This is what bankers predicted during a conference on April 25 organised by the investor.bg website.

In Bulgaria, the trend will be felt much slower than in the rest of the European Union and the euro area in particular.

The main interest rate of the European Central Bank has reached a historically high level and from now on experts expect it to decrease.

"This trend should logically meet another trend that we see in Bulgaria - there is a slight and smooth rise in interest rates on deposits, of course much less than it is in the euro area countries," said Assen Yagodin.

However, mortgage lending for expensive properties is also continuing and there is an explanation for this.

"Property prices, incomes are always in relation and we have a so to say serious increase in incomes in Bulgaria," explained Ilian Georgiev.

"Plus a lot of money is coming from abroad from people who want to buy properties - second, third property - which is also already a trend," Svetoslav Milanov said.

The bankers estimate that every day Bulgaria loses because the country is outside the euro area and at the same time is in a currency board and the Bulgarian currency is pegged to the euro.

That is why the trends are slower to come here.

"We are all making efforts in terms of joining the euro area, in terms of being able to say that we are already welcome there, but as our partners said - this will happen when we meet the relevant criteria," said Petar Chobanov.

The Bulgarian National Bank still has expectations that it is possible to adopt the euro next year, but this is unlikely to happen from 1 January.