Redemption rule
A lender cannot refuse to accept early redemption from a customer, Parliament decided on June 15, passing the Consumer Credit Act on second reading. Early repayment is to lead to smaller interest payments and loan costs included in its amount, depending on the period during which the consumer loan will not be used. The consumer's expenses included in the consumer loan agreement cannot exceed the three-month equivalent of the annual percentage of the outlays on the outstanding portion of the loan. The provision will not apply to loans below 400 leva or above 40 000 leva. Mortgage credits fall outside the scope of the provision. Furthermore, it will not apply to loans the consumer has committed to repay in three months at the most, or to loans repayable in up to four instalments over 12 months at the most.

Reappointment
ProCredit Bank Bulgaria said on June 19 its executive director Elitsa Tsareva would head the Moldovan unit of the international banking group. "Tsareva will assist the transition of the Moldovan credit institution into a bank, which will offer the full range of financial services," ProCredit Bank Bulgaria said in a statement. ProCredit said earlier that given the high-risk profile of Moldova, ProCredit in the ex-Soviet country has taken the form of a finance company, requiring little paid in capital. Mariana Petkova, currently heading ProCredit Bulgaria's accounting department, will replace Tsareva as ProCredit Bank Bulgaria executive director.

DSK awarded
DSK Bank, owned by Hungary's OTP Bank, was named best bank in Bulgaria for 2006, best bank in terms of assets and best bank in terms of total profit by the financial magazine Finance Central Europe. Violina Marinova, CEO and board chair of DSK Bank, was selected best banker in Bulgaria for 2006 by the magazine. The ranking, published annually by Finance Central Europe, is based on the performance of the banks, as well as on references from consultancy agencies. The London-based magazine is the first solely devoted to Central and Eastern European markets.

SME incentive
HVB Bank Biochim and Hebros Bank, part of the UniCredit Group, are marketing a new product aimed at small and medium-sized enterprises (SMEs). The Business Optimum package, which includes no-commission settlement account in the local currency (the lev), no-commission issuing of VISA Business Electron or MasterCard Business cards and automatic overdraft on the company settlement accounts, slashes by up to 50 per cent the standard fees and commissions on services and products used by SMEs on a day-to-day basis. SMEs generate 80 per cent of this country's jobs, and 54 per cent of exports.