Will the interest change after the loan repaid: BNB answers questions about the euro

Will dematerialized transfers be executed in BGN during the period of double circulation of BGN and euro?

– From the date of introduction of the euro in the Republic of Bulgaria for a period of one month the lion and the euro will be legal payment funds on the territory of the country (a period of double circulation of BGN and euro). This means that during this one month, citizens will only be able to make in both currencies only cash payments (in stock). During the period of double circulation, all dematerialized translations in a national currency

They will be fulfilled according to the business and technical requirements for payments in the euro.

How will dematerialized translations be implemented in national currency after the country’s accession to the euro area?

The Payment System for Customer Translation Services in Euro Biser, operated by Borika AD, executes local and cross -border SEPA payments in euro. Since July 2024, Biser has provided full SEPA’s attainability of payments in euros through the BNB’s participation in EBA Clearing’s Step2 system.

Immediate payments in euro can be made through the TIPS (Target Instant Payment Settlement) system. Since December 2024, the BNB and Borika AD have participated in Tips, providing the opportunity for banks and other payment service providers to make local and border customer immediate payments in euro.

How will card payments be executed after the country’s accession to the euro area?

– When introducing the euro as a national currency for citizens, there will be no change in the way POS, ATM and online card transactions are performed. The Borika Card Payment System will switch to processing of payment cards in euro payment cards, and their settlement will be carried out in the consolidated Target Services Platform.

What banknotes will be distributed when withdrawing cash to a terminal ATM (ATM) terminal during the one -month period of double circulation of BGN and the euro?

– From the date of introduction of the euro in the Republic of Bulgaria, when withdrawing cash through self -service machines, including ATM (ATM) terminal devices, only Eurobanknotes will be distributed.

How will the funds on the payment accounts on the date of the introduction of the euro be transferred in the Republic of Bulgaria?

On the date of introduction of the euro in the Republic of Bulgaria, the credit institutions and other payment services providers once overrove all BGN balances on the accounts of their clients in the euro in accordance with the rules for the overwhelming and rounding rules in accordance with Art. 12 and 13 of the Law on Introduction of the euro in the Republic of Bulgaria, without fees and commissions for the client and while maintaining the terms of the respective contracts valid before the translation.

In addition, a person who, as of the date of introduction of the euro in the Republic of Bulgaria, has payment accounts free from weights, attachments or other legal restrictions, including electronic money accounts, in BGN and in the euro at the same payment service provider, may within two months from the date of the euro, and to request the closure of one payment and while retaining the terms of the payment account to which the funds are transferred. No fees and commissions are charged for these operations.

In the event that there is a debit balance or a credit card issued on the payment account, the person should repay the relevant obligation before the closure.

In what currency will payment transactions be implemented that have been initiated in BGN before the date of introduction of the euro and have not yet ended by that date?

– from the date of introduction of the euro in the Republic of Bulgaria payment transactions related to the provision of payment services under Art. 4 of the Law on Payment Services and Payment Systems, which, before the date of introduction of the euro, have been initiated in BGN and will be completed on the date of introduction of the euro or after, shall be executed in the euro.

How are the state securities overheated, which are registered in the electronic system for registration and servicing of the StCC (ENT) trade in the BNB?

– The nominal value of all Emissions DC in BGN is overrun once in the euro in accordance with Art. 12 of the Law on Introduction of the euro in the Republic of Bulgaria and the result is rounded in accordance with Art. 13. The transfer of the nominal values ​​for each individual client account for the government securities, for each issue of the State Protection of the State Security Code (ISIN) is carried out by the Bulgarian National Bank after receiving from the banks – participants in the END, of the extracted individual accounts of their clients.

The Bulgarian National Bank sends information from the bans led to the banks – participants in the EC, registers for the cerebral palsy of the Ministry of Finance, on the basis of which the Ministry of Finance registers in the official register of the state and governmental debt under Art. 38, para. 1 of the Government Debt Act, the aggregate nominal values ​​for each issue of state securities in levs, overworked in euro.

How long will the trade in state securities in Bulgarian levs be carried out?

– Three working days before the date of introduction of the euro, all transactions and operations with government securities in Bulgarian levs are discontinued.

What are the fees and commissions for the cropping of government securities?

– No fees and commissions are collected for the activities for the crime of state securities.

How will the fees and commissions be presented by payment service providers during the double indication of the prices of goods and services?

– Fees and commissions of payment service providers (banks, payment institutions and electronic money companies) accrued in connection with the payment services provided by them (payment/withdrawal of money in cash, the execution of credit transfers and cards in the lenses and the money transfers, etc.), will be submitted. Declacing the prices of goods and services, which begins one month after the date of entry into force of the decision to accept the euro and ends 12 months after the date of introduction of the euro in the Republic of Bulgaria.

Information on the applicable fees and commissions is disclosed in the offices and on the websites of payment service providers, where applicable. This information is provided in any case free of charge on paper or other durable medium upon request by a client according to Art. 21, para. 1 of the Law on Introduction of the euro in the Republic of Bulgaria.

Changes in the amount of fees and commissions of payment service providers are made in accordance with the provisions of the Payment Services and Payment Systems Act. They are provided by the payment service provider to the payment service user within at least two months before the date on which the changes are proposed to enter into force. When changes to the fees and commissions due are more favorable to the payment service user, they shall apply without prior notice.

Will the BNB continue to publish a basic interest rate (APP) after the introduction of the euro in the Republic of Bulgaria?

– The Bulgarian National Bank will suspend the announcement of the basic interest rate under Art. 35 of the BNB Act since the beginning of the period after the introduction of the euro as a national currency. In this regard, for example, after the adoption of the euro in the Republic of Bulgaria, the role of the BNB of the BNB will be eliminated as the basis for determining the legal interest in the country in accordance with the respective directive.

Following the adoption of the euro as a national currency for the basic interest rate of a Member State whose currency is the euro, after appropriate transposition into national legislation, it may be applied

or

(a) the interest rate applied by the European Central Bank in its most recent major refinancing operations;

or

b) the marginal interest rate obtained in tendering procedures with a variable percentage for the most recent

Main operations for refinancing the European Central Bank.

How will the transfer of lev loans to euro affect the way the interest rate is formed on them?

– According to Art. 44 of the Law on the Introduction of the euro in the Republic of Bulgaria, in case of a significant change or termination of the preparation of a benchmark (interest index) used as the basis for calculating the variable interest rate on credit agreements, which are transferred from levs in euro, an alternative benchmark is used as a replacement.

Changing the interest base at the date of introduction of the euro in the Republic of Bulgaria should not lead to the formation of an interest rate, which is higher than the interest rate applied before the date of introduction of the euro. The changes to the loan agreements, banks notify the clients in the proper order provided for in the national legislation.