Variable Interest Rate Formation Methodology of Municipal Bank Under Consumer Loan Act for Loans to Individuals from 23.07.2014 to 17.10.2018 incl.

Variable Interest Rate Formation Methodology of Municipal Bank Under Consumer Loan Act for Loans to Individuals

1. Loans provided by Municipal Bank (excluding those collateralized by cash and/or securities) have a variable interest rate determined by the bank’s competent authority. The interest rate is formed by the Base Interest Rate (BIR), announced by the Bulgarian National Bank, in force as of January, and July, respectively, of the current year plus a margin/discount.
    
2. During the period from 1 January up to (and including) 30 June of the current year the Base Interest Rate in force as of 1 January of the same year shall apply, and in the period from 1 July up to (and including) 31 December of the current year the Base Interest Rate in force as of 1 July of the same year shall apply.
    
3. Loan Agreements concluded during the period 1 January to (and including) 30 June of the current year shall have an interest rate formed on the basis of the Base Interest Rate in force in January of the same year plus the corresponding margin/discount, and loan agreements concluded in period from 1 July to (and including) 31 December of the current year shall have an interest rate formed on the basis of Base Interest Rate in force in July of the same year plus the corresponding margin/discount.
    
4. In case the Bulgarian National Bank discontinues or revokes the determination of a Base Interest Rate, the competent authority of Municipal Bank shall define a different reference rate within the meaning of the Consumer Loan Act, and the interest rates on the loans shall be considered automatically modified in accordance with the amendments adopted.

Base interest rates previously applied by Municipal Bank AD when forming the interest rates under loans to individuals:

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