Bulgarian MPs Ban Unilateral Bank Interest Rate Changes

Banks in Bulgaria are now mandated to publish on their internet sites the current amount of the interest rates and the referential interest percentages they use. File photo

Banks in Bulgaria are no longer allowed to single-handedly change their methodology for calculating interest rates after a loan contract has been concluded.

The amendment to the Consumer Credit Act was passed at second reading Thursday by the Bulgarian Members of the Parliament.

The creditors are mandated to publish on their internet sites the current amount of the interest rates and the referential interest percentages they use along with the methodology for their calculations.

Violations and changes in methodology will be fined anywhere between BGN 700 and 2 000 for individuals and BGN 3 000 to 8 000 for businesses.

The amendment will become effective after its publishing in the State Gazette.

 

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