Back to back letter of credit
A secondary L/C, issued on the basis of another, master credit. The beneficiary of the master L/C becomes an applicant on ht e secondary one, transferring his rights in favor of a third party (beneficiary of the secondary L/C).
Statement of the financial position of a company at a particular time, such as the end of the financial year or the end of a quarter, showing the company's assets and liabilities.
An account, which a customer has with a bank, for depositing or withdrawing of money or other valuables under special terms.
Plastic card with electronically stored information (magnetic strip or chip) with data on the card and its holder. The card is used for obtaining cash from cash dispensers and payment of goods and facilities, while its holder gains an access to his/her bank account.
Charges, which a bank makes for carrying out operations for a customer.
Bank code (abbr. BAE)
A code identifying a bank and its branch units in tnis country for making transfers and thus indicating the receiver’s account or that of the account of the ordering person.
Bank fees on FC transfers
Banks charge three types of FC transfer fees, following S.W.I.F.T. standards:
- OUR, where the drawer covers all fees incl. those of the drawer’s bank, the correspondent bank and the beneficiary’s one;
- SHA, where the drawer covers the fees of the drawer’s bank, while the beneficiary pays the fees of the correspondent bank and of the beneficiary’s bank;
- BEN , where all fees are covered by the beneficiary, while the drawer’s bank deducts its fees from the amount transferred.
An irrevocable arrangement of a bank to pay out a sum of money to a creditor in compliance with the guarantee contracted terms, if the debtor fails to repay his debt by a certain date.
A loan granted by a bank to a borrower for concrete purpose under contracted interest rate, collateral and due for repayment for a set period.
Automated Teller Machine, an automated electronic terminal for bank card operations – cash withdrawals, payment of goods and facilities, transfers from the card account to other accounts, checking the account balance of the cardholder, change of PIN code. Other functions are subject to be activated technologically as well.
Basic Interest Rate (BIR)
Basic rate of interest which a bank uses to calculate the actual rate of interest on loans (BIR plus a surplus) to customers. BIR is used to avoid fluctuations of Central bank ......., which would incur changes in the repayment schedules of loans.
A third party in whose favor a contract is concluded or is entitled to benefit from a bank deal (transfer, L/C, cheque).
Budget identification code, set by the Ministry of Finance for an account of a budgetary entity for classifying the type of income or expense on this account.
Banking integrated system for processing electronic, BGN payments (transfers, cash collections) of clients in this country effected twice a day.
A bank card which cannot be used for performing card transactions due to the invalidity of the card, when declared lost or stolen, if wrong PIN code is used, or when the card is blocked by an ATM.
BNB (Bulgarian National Bank)
Central Bulgarian bank, which, together with Treasury, operates mainly as a regulator of the nation's finances by supporting the stability of the national currency, the operation of a reliable payment system, and issuing banknotes and coins for this country. BNB supervises the stability of the banking and the financial sector, licenses banking and non-banking financial institutions, controls treasury bills’ trade and settlement, fixes main interest rates and controls the foreign exchange rate.
National card operator (abbr. from Bank organization for initiating card payments), servicing the card issuing banks in this country. BORICA authorizes the card payments of the local banks, personalizes the cards, nets the intra-bank payments and submits the settlement balance to the Central bank. It tests and certifies ATMs and POS terminals, supports the relations between the local banks and the international card companies (MasterCard, Visa, and American Express).
A person, who acts as independent middleman between a seller and a buyer for trading foreign currencies, shares, bonds or stock.
Firm that carries out deals, which buys and sells shares, negotiable instruments, commissions, intermediary services on investment funds management for clients.