Borrowers have seen two and some of them even three interest rate rises

during the last twelve months as the global credit crunch has started to bite. With the last increase the difference between what they agreed with banks and the actual rates has reached two percentage points. Institutions first raised interest rates after an increase of the minimum mandatory reserves at the central bank from the beginning of September. Other increases followed due to the tightening credit conditions on an international scale and they are influencing 70 percent of borrowers, mostly the existing clients of banks, said Credit Center, a Bulgarian loan broker.