In connection with the changes implemented by the Law for amendment and supplement of the Law on Credit Institutions – promulgated, SG, issue 51 of 19.06.2018, effective from 01.07.2018, and the Bulgarian National Bank ceasing to provide the quotation of the Sofibor index, UCF applies to its loan agreements with a variable interest rate the reference interest rate described below.

Average Deposit Index ("ADI"), calculated by UCF on the basis of the interest rate statistics of the Bulgarian National Bank (BNB), presented in an Excel file "Interest Rate Statistics – All Tables", in tables "Interest Rates and Volumes on Balances on Term Deposits of the Non-financial Corporations Sector”, “Interest Rates and Volumes on Balances on Term Deposits of the Households Sector”, “Interest Rates and Volumes on Balances on Overnight Deposits and Deposits Redeemable at Notice of the Non-financial Corporations Sector”, “Interest Rates and Volumes on Balances on Overnight Deposits and Deposits Redeemable at Notice of the Households Sector”, published on the BNB website, which you can view here (Tables).

ADI is calculated by UCF as a weighted average interest rate on the total volume of the deposits in Bulgarian leva of the Non-financial Corporations and Households Sectors in the banking system in Bulgaria presented in the Tables, derived by weighing the values of the effective annual interest rate directly taken from the Tables by all client categories and types of deposits in Bulgarian leva presented in the Tables with their volumes for the respective month. The weighted average value is derived as the sum of the products of the effective annual interest rate (from the Tables) and the volume for the respective client category and deposit type for the same month (from the Tables) is divided by the sum of the volumes of all deposits in BGN for the same month (from the Tables). The current value of the ADI is published on the webpage of UCF on the first business day of each calendar month and is applied from the first business day of the calendar month until the day preceding the first business day of the next calendar month inclusive.

In the event that the BNB ceases to publish the data in any of the Tables and as a result of this UCF is unable to calculate a reference interest rate applicable under a loan agreement, UCF in compliance with the legal requirements shall apply an action plan approved by its Management Board and setting out the actions that would be taken in the event that a benchmark ceases to be provided pursuant to Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (ОJ, L 171/1 of 29 June 2016). At the time of applying a reference interest rate under the loan agreement, the interest rate under the agreement shall not be higher than the amount of the interest rate under the loan agreement

Detailed information on the application of the methodology and calculation examples