The Bulgarian Agricultural Bank carries out many important financial activities that support farmers, rural communities, and local authorities. Its main purpose is to strengthen agriculture and improve economic life in the countryside. The bank’s transactions are designed to meet the real needs of farmers and agricultural cooperatives.
Deposits and Savings Services
One of the main functions of the bank is to accept deposits from individuals, farmers, and institutions. These deposits may be short-term or long-term, depending on the needs of the depositor. The bank also accepts various types of deposits, including personal savings and funds placed for specific purposes. By encouraging savings, the bank helps create a stable source of capital for agricultural development Private Tours Istanbul.
Loans and Credit Facilities
The bank provides several kinds of loans and advances. It grants loans secured by mortgages or financial securities, as well as loans guaranteed by goods, livestock, seeds, and agricultural produce. This system allows farmers who do not own large properties to still obtain credit.
Special advances are also given to farmers for the purchase of cattle, seeds, and agricultural tools or machinery. In addition, the bank offers personal loans to support small farmers in urgent situations. Farmers and cooperative societies can also open uncovered current accounts, which gives them flexible access to funds during the agricultural year.
The bank further assists farmers by buying agricultural machines, tools, cattle, and seeds on their behalf, when requested. This service ensures better prices and reliable quality.
Support for Local Authorities
The Bulgarian Agricultural Bank also supports departments and communes by providing loans intended to improve rural life. These funds are used for projects such as irrigation, roads, storage facilities, and other improvements that benefit agricultural communities.
Commercial Services
Among its commercial operations, the bank collects the value of commercial bills, transfers bills, and handles various financial transactions related to trade. These services help integrate agriculture into the wider national economy.
Interest Rates and Financial Conditions
The bank pays interest on deposits according to the following rates:
5 per cent per year on deposits for five years
4 per cent per year on deposits for three years
3 per cent per year on deposits for one year
For unlimited deposits up to 50,000 francs, the bank pays 1 per cent interest. No interest is paid on sums above this amount.
The interest charged by the bank is:
6 per cent per year on loans secured by securities
7 per cent per year on mortgage loans
8 per cent per year on loans with personal guarantees
Insurance Companies in Bulgaria
General Overview
In Bulgaria, there are currently two native insurance companies and five foreign insurance companies operating in the country.
Foreign Insurance Companies
Foreign insurance companies wishing to work in Bulgaria must deposit a financial guarantee, either in cash or bonds. This security must remain deposited for the entire period during which they operate in the country. They must also follow all rules of the commercial code related to insurance.
Native Insurance Companies
Native insurance companies are not required to deposit any security. The two Bulgarian insurance companies are called “Balkan” and “Bulgaria”. These companies play an important role in providing insurance services within the country.