The base interest rate (BIR) valid as from February 1 to February 28, 2005, has been set at 1.89 per cent, the Bulgarian National Bank (BNB) announced. This is the lowest base interest since its introduction in 1991 and the lowest since the introduction of a currency
board arrangement (CBA) in 1997.
At least five Bulgarian banks are to reduce their interest rates by approximately 0.5% due
to the drop in the base interest rate.
The five banks are Municipality Bank, Allianz Bulgaria, Union Bank, First Investment Bank and Corporate Commercial Bank. Those banks fix their interest rates on the (BIR) basis.
In December BNB informed that the BIR is dropping down because it will be equalled to
the LEIONIA (Lev OverNight Index Average) values.
Source: Novinite
