We would like to inform you that according to an official announcement of the BNB, the SOFIBOR index will no longer be published as of 1 July 2018. Until 1 July 2018, Allianz Bank Bulgaria used the SOFIBOR index as a basis for calculating the reference rate on loans to business clients in BGN.
Allianz Bank Bulgaria has approved an “Action Plan in Case of Significant Change or Cancellation of a Benchmark” (the Plan), prepared in implementation of Regulation (EU) 2016/1011, according to which the BIR is changed by replacing the SOFIBOR index with a new interest rate index – Base Deposit Index for Legal entities (BDILE).
The BDILE is calculated according to the Methodology approved by the Management Board of Allianz Bank Bulgaria, which is effective as of 01.07.2018 and is valid for all agreements for loans in BGN.
The value of the BDILE valid as of 01.07.2018 amounts to 0.13% and will be applied as of 01.07.2018 when forming the interest rate on new loan agreements.
For contracts concluded before 01.07.2018, the bank will apply the provisions of the Action Plan regarding the introduction as a Reference Rate of the new index - BDILE, subject to the follow:
- Until 31.12.2018, the value of BIR will be the last value published on the website of Allianz Bank Bulgaria, calculated as af 25.06.2018 on the basis of SOFIBOR.
- In case the borrower does not agree with the new market index (BDILE) chosen by the bank, they have the right to declare in writing a disagreement to the Bank by 31.12.2018. In this case, the borrower is in their right for early prepayment of the loan within 60 days from the date of the submission of the declaration in the Bank. To the end of this period the applied interest rate is the last published under item 1. The borrower will not incur a financial penalty in connection with the early repayment of the loan, if such a penalty is provided for in the agreement.
- After the expiration of the terms under items 1 and 3, the Bank will start using BDILE in forming the interest rate on loan agreements in BGN, in application of the above-mentioned Methodology. The agreed flat-rate allowance will not change.
In order to perform the above-mentioned replacement, it is not necessary to take any actions on your part, as well as to conclude an additional agreement to your contract.
If you have any questions and need information, you are welcome in your most convenient bank office.