Personal Banking
Phone numbers
Предишен
Следващ
- 0700 117 17
E-Banking - 0700 117 17
Customer service center - 02/980 22 35
Blocked and stolen cards
Methodology of United Bulgarian Bank for Determining the Base Rate
Methodology of United Bulgarian Bank for determining the Base Rate (BR) used in the formation of interest rates on loans to individuals
1. Purpose and Scope
This methodology establishes and regulates the manner of determining the base rates (BR) of United Bulgarian Bank, applicable to agreements for variable rate loans to individuals.
United Bulgarian Bank’s interest rates on loans to individuals are determined by the Base Rate in BGN / EUR (BR) of United Bulgarian Bank for individuals, valid for the respective loan type and contractual margin. The margin for all mortgage and consumer loans is a fixed one.
The methodology is applicable to loans, granted by the Bank to individuals, where the BR is used as a reference rate.
2. Methodology for determining the BR
2. Methodology for determining the BR
The methodology for determining the BR is based on the respective reference rates (RR) in BGN and EUR, which comprise of the following components:
- benchmark for the interbank money market in BGN – 3-month Sofibor (for loans in BGN);
- benchmark for the interbank money market in EUR - 3-month Euribor and 5 - year credit default swap of the Republic of Bulgaria (5 Y CDS mid) (for loans in EUR);
- minimum statutory reserves with the BNB;
- annual premium contribution to the Deposit Insurance Fund;
The Asset and Liabilities Management Committee of United Bulgarian Bank (ALCO) determines the BR per credit products, based on the above-described methodology and upon considering additionally the following factors:
- Inflation;
- Change in the legal, political and financial framework and FX risk;
- Risk margin per products.
3. BR Change
On quarterly basis ALCO reviews and confirms or changes the BR considering the level of RR in BGN and EUR. Any ALCO decision on changing the BR is published in UBB website.
Upon a change in the BR, the Bank will notify its clients in accordance with statutory requirements and as agreed with the particular client, as besides in the website the information is also available in UBB banking offices
4. Base Rates of United Bulgarian Bank
On quarterly basis ALCO reviews and confirms or changes the BR considering the level of RR in BGN and EUR. Any ALCO decision on changing the BR is published in UBB website.
Upon a change in the BR, the Bank will notify its clients in accordance with statutory requirements and as agreed with the particular client, as besides in the website the information is also available in UBB banking offices
4. Base Rates of United Bulgarian Bank
| BR on loans to individuals | % |
| BR on mortgage loans in BGN and EUR | 5.00% |
| BR on consumer loans in BGN | 7.00% |
| BR on credit cards (credit lines) in BGN | 9.00% |