Fri, May 25 2012

Bulgaria moots fixed early loan repayment fee

Tue, Sep 08 2009 13:10 CET

byDnevnik.bg

1390 Views
Bulgarian consumer loan borrowers will be charged an early repayment fee of between 0.5 and one per cent on loans with a fixed interest rate, according to a new bill drafted by a working group from the Economy Ministry and the Bulgarian National Bank (BNB).

The 0.5 per cent fee will apply to loans repaid with less than a year from the maturity of the loan. The fee will be one per cent if customers repay their loan with more than 12 months left.

The proposals are modeled on the respective European directive, said Daniela Bobeva, International Relations and European Integration head at the central bank. Banks will not be allowed to charge for early repayment of loans with floating interest rates, which are the bulk of their credit portfolios.

If passed, the new bill should also regulate mortgages by forcing banks to adopt a single mechanism of calculating and announcing the annual percentage rate (APR). But details are yet to be agreed as ARP excludes notary and insurance fees, which are part and parcel of the total credit cost, and is therefore potentially misleading for borrowers.

Source: Dnevnik

  • Print
  • Send via email
  • Translate to
  • Share:

To post comments, please, Login or Register.


Please read the The Sofia Echo forum comments policy.

Bulgarians take loans for essential needs as incomes dip

Most Bulgarians tapped into consumer loans, followed by credit cards and mortgages. Most debtors have monthly incomes of up to 600 leva. Most loans range between 5000 to 10 000 leva.

Super-regulator could oversee Bulgaria’s financial system

Bulgarian Finance Minister Simeon Dyankov unpackaged plans to merge the nation’s financial and banking watchdog in a single body, stoking speculations of upcoming management reshuffles at the two institutions.

Third-party liability insurance in Bulgaria should be 300 euro, insurers say

The current average price of between 80 and 120 euro was far from the levels charged in other European Union countries

Bulgarian banks reduce corporate loan interest rates

The September 16 2009 announcement by a bank that it is to reduce interest on loans to SMEs is setting the stage for other banks to do the same.

Bulgaria bank rates could go down in Q4 2009

Lending and deposit rates in Bulgaria could go slightly down in the fourth quarter of 2009 but not go back their levels before the Lehman Brothers demise, said Momchil Andreev, executive director of Raiffeisenbank Bulgaria.

More in this category

Bulgaria secures one-year extension on Belene loan - minister

The option to postpone the due date was contingent on securing 55 million euro for immediate repayment of the amounts loaned by Belgium's Dexia and Japanese bank Mizuho.

Euro zone unemployment at record high

The Eurostat data agency said that unemployment reached 10.9 per cent in March, up from 10.8 per cent in February. The March figure translates to 17.4 million people unemployed in the euro zone.

Sale of Bulgarian telecom BTC faces cancellation – report

Citing three separate sources familiar with the deal, Capital Daily reports that the creditors found offers submitted by three bidders unsatisfactory.

Raiffeisen takes over Polbank

Eurobank EFG is left with a 30 per cent stake in the merged entity but has said it will exercise its put option on the remaining holding.

Global jobs crisis to continue for some time, ILO report says

The narrow focus of many euro zone countries on fiscal austerity is deepening the jobs crisis and could even lead to another recession in Europe, said the Director of the ILO Institute for International Labour Studies and lead author of the report, Raymond Torres.

Appointments

Employment Agency

Employment Agency

Kamelia Lozanova has been appointed the executive director of the Employment Agency, a position she has held ad interim since September 2011, following the resignation of her predecessor Rossitsa Stelianova. Prior to that, Lozanova was the agency's deputy executive director in charge of international projects and European programmes. She has been with the agency for more than 20 years. Lozanova has a degree in Slavonic philology from the St Kliment Ohridski University of Sofia.

Uniqa

Uniqa

Gloria Dimitrova has been appointed executive director and member of the managing board at Uniqa Life Insurance Bulgaria. Dimitrova began her career in 1998 at the insurance supervision directorate, but moved to the private sector and worked for professional services and insurance brokerage firm Marsh&McLennan and US insurer AIG, both in Bulgaria and the Middle East. She joined Uniqa as regional director for Sofia in 2010. Dimitrova has a degree in economics from the University for National and World Economy in Sofia and a master's degree in insurance from the Business Academy in Svishtov.

Beiersdorf

Beiersdorf

Bedros Kalfayan, general manager of skin care and cosmetics company Beiersdorf Bulgaria, will oversee the parent's company units in Romania and Moldova starting April 1. Following company restructuring, Beiersdorf's subsidiaries in the three countries were merged and are now one unit, part of Beiersdorf Central and Eastern Europe. Kalfayan joined Beiersdorf in 2007 as sales manager and was promoted to general manager in 2008. Prior to that, he worked for Axxon Bulgaria, Ferrero and Rubella. Kalfayan has a master's degree in industrial management from the Technical University in Sofia.

Kamenitza

Kamenitza

Yassen Lyubenov is the new head of marketing at Bulgarian beer brewer Kamenitza. Lyubenov has 12 years of experience in marketing in the fast-moving consumer goods sector and has started his career as assistant brand manager at Kraft Foods Bulgaria. He later became brand manager at Wrigley Bulgaria, with responsibilities for Bulgaria and Macedonia. Prior to joining Kamenitza, he was senior marketing manager at Wrigley Russia, where he was in charge of brand expansion into Ukraine, Belarus, Central Asia and the Caucasus. Lyubenov has a bachelor's degree in international business administration from the University of Lincoln, UK.

Hewlett-Packard

Hewlett-Packard

Sasha Bezuhanova has been appointed Hewlett-Packard public sector director for emerging markets, where she will oversee HP public sector activities in 63 countries, including Bulgaria. Bezuhanova will also be in charge of HP's relations with the European Union. Bezuhanova has been HP's public sector director for Central and Eastern Europe since 2008; before that she was general manager of HP Bulgaria since 1998. Bezuhanova has a master's degree in electronics from the Technical University in Sofia and has completed a managment programme at INSEAD.

© 2000-2012, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.