09.03.2023

BNB RAISED THE MAIN INTEREST RATE ABOVE 2%

The BNB announced a new increase in the main interest rate. As of March 1, 2023, the main rate becomes 2.17 percent. This is the sixth increase since October. From February 1, 2023, the main interest rate was increased to 1.82 percent, from January 1 - to 1.42%, and from December 1 - to 1.30%. In October it was set at 0.49% and in November it rose to 0.59%. The main rate was last different from 0.00 on January 1, 2016, when it was 0.01%.

The value of the main interest rate matters, but only in some limited cases. Most of all, the main interest rate is used to calculate the penalty or statutory interest on late payment. The calculation is done by adding 10 percentage points to the main interest rate.

Due to the growth of the main interest rate, from January 1, the legal interest for overdue monetary obligations of citizens, companies became 11.42 percent per year.

In our country, interest for overdue payment is regulated by the Law on Obligations and Contracts and Resolution of the Council of Ministers No. 426 of December 18, 2014.

It is written in them that the so-called penal interest, which is applied to all public obligations (taxes, insurances, fees, etc.), is formed twice a year - on January 1 and July 1, adding to the base rate, which is 10 percent, the amount of the main interest rate determined by the Bulgarian National Bank. Since it was 1.42 percent in January, the legal interest for overdue monetary obligations, which is also often applied in contracts between citizens and businesses, reaches 11.42 percent per year.