UniCredit Bulbank and the Commission on Consumer Protection agreed on the implementation of improvements to the general terms and conditions for mortgage loans provided to individuals by the Bank.

“Although the joint efforts so far do not contradict the law, the Bank includes a more detailed description in order to avoid various interpretations and achieve full transparency”, UCB’s insiders said.

The change is related to the introduction of a clear description of the way in which the interest is formed and the market conditions under which it can be changed.

A special clause is introduced which gives an option to all customers whose premium is increased with more than 1%, to repay their loan to UniCredit Bulbank within two months without being charged an early repayment fee. The two-month period begins after the notification of the customer about the change in the interest rate.

The same preference is valid from the time of publication of the general terms and conditions for mortgage loans * also for customers who have already received loans and have been affected by a change in the interest rate since November 2008.

“From CCP’s perspective the aim is to create conditions for transparency regarding the formation of the interest under the loan and about the factors affecting its change, as well as to give an option to the borrowers if the interest goes up to give up the contract by repaying the loan without additional charge”, said Ognyan Varadinov, member to the Commission on Consumer Protection.

"The aim of the bank is to have long-term correct relations with the customers. Of course we abide by the law but in rare cases as now we overperform on the legal requirements in favour of the customers”, UCB’s insiders added.

The improved general terms and conditions envisage a special clause which regulates that according to the market conditions the interest can go up or down. Possible future changes of the interest will become effective with being announced on the web site of the Bank and after notification of the customer in the manner provided for by the law.

UniCredit Bulbank is engaged to provide a possibility for the borrowers through the web page of the Bank to be informed about the applicable base interest rate/index of UniCredit Bulbank.

*The full tex of the General terms and conditions under which UniCredit Bulbank provides loan to individuals will be published on the web site of UniCredit Bulbank today at 15 hrs.

 

UniCredit Bulbank, Public relations and corporate communications:

Viktoria Blajeva, Tel: 02/9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Tel: 02/9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch