A

Accept
Act of signing a bill of exchange, by adding the word “accepted”, to show that the debtor agrees to pay it.

Accepting bank
A bank, accepting card payments on an ATM, POS terminal, Im-printer or other units.

Annuity
Money paid back on bank loan, incl. the principal and the interest due. Annuity payments are equal in size and repaid in equal periods (on a monthly, quarterly, six-month and annual periods).

Assets
Property of a company, posted in its Balance Sheet. Assets are tangible and intangible (financial, immovables, machines and equipment, inventory, licenses, software, etc.).

Authorization of a bank card transaction
A process verifying the opportunity to effect a bank card transaction in terms of the card validity, sufficient amounts on the card account (for debit cards) or authorized limits (for credit cards), daily and weekly draw limits, correct PIN code.

Aval
Guarantee (warrant) on a bill on which the guarantor undertakes the engagement for its discharge to its issuers.

АТМ
Automated Teller Machine (Ref. bankomat).

A B C D E G H I L M N P Q R S T V W Y

A B C D E G H I L M N P Q R S T V W Y

B

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).

Balance sheet
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.

Bank account
An account, which a customer has with a bank, for depositing or withdrawing of money or other valuables under special terms.

Bank card
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.

Bank charges
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.

Bank guarantee
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.

Bank Loan
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.

Bankomat (ATM)
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.

Beneficiary
A third party in whose favor a contract is concluded or is entitled to benefit from a bank deal (transfer, L/C, cheque).

BIN Code
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.

BISERA
Banking integrated system for processing electronic, BGN payments (transfers, cash collections) of clients in this country effected twice a day.

Blocked card
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.

Broker
A person, who acts as independent middleman between a seller and a buyer for trading foreign currencies, shares, bonds or stock.

Brokerage house
Firm that carries out deals, which buys and sells shares, negotiable instruments, commissions, intermediary services on investment funds management for clients.

C

Capital market
International market where money can be raised for investment in business. A market where long-term financial instruments (shares, bonds, and other bills) are traded/exchanged.

Card account
Current account for posting card transactions. The issuing bank requires a minimum balance (which is blocked) to be maintained for preventing from unpermitted overdraft, when charging fees on off-line transactions.

Cardholder
A person who holds a credit card or a bank cash (debit) card.

Child deposit

Savings account opened with a bank in favor of individuals under age. 

Collateral
Security (such as movable or immovable property, or negotiable instruments, shares, goods) used to provide a total or partial guarantee for a loan repayment.

Consolidated financial statements
Financial statements of the subsidiary companies grouped together in the financial statements of the parent company.

Consumer loan
Short-term loan granted to individuals for the purpose of buying certain consumer goods, the latter themselves being taken usu. as security for the loan.

Contracted interest rate
Percentage rate agreed between the bank and its customers for borrowing money or for their investments in deposits with the bank. The rate is based on the basic interest rate set by the Central bank, the loan and deposit market environment, terms and the related risk.

Correspondent banking
Banks that have exchanged telex or SWIFT codes for information exchange on transfers, L/Cs, encashment, guarantees, etc. A further, higher level is opening correspondent accounts (nostro or loro accounts).

Credit bank
Bank which lends money.

Credit-worthiness
Credit-borrower deserving trust, who is certain to repay debts promptly and therefore worthy of being allowed a credit.

Cross rate
Rates of exchange of two currencies, shown against each other, but in terms of a third basic currency.

Crossed cheque
Cheque with two parallel lines across it, usually by the drawer or with the words' account payee only' is aimed against any attempts of forgery. This cheque is not transferable and is paid only on the beneficiary’s bank account.

Currency
The monetary unit, forming the monetary system of a country (gold, silver, notes, etc.)

Currency Exchange
Deals on exchanging the money of one country for that of another, effected on the domestic and FC markets by the licensed financial institutions (banks, brokerage houses, etc.).

Currency Exchange Rate
Rate at which one currency is exchanged for another.

Currency Futures
Purchases of different types of foreign currency under a contract, providing for delivery of the stimulated currency at a fixed rate and at a fixed future date.

Currency Market
The volumes of currency traded at a market or market zones for a period.

Currency Operation
Agreement for trading currency at a contracted rate on a fixed price.

Currency Option
Agreement giving someone (holder) the possibility to buy or sell currency at a fixed price within a set period of time.

Currency Risk
Possible loss for a bank of fluctuating currency prices on the international markets.

Currency SWAP
Agreement to purchase a certain currency at the spot market and its parallel sale of the same volume at the forward market.

D

Dealer
Person or firm who trades (buy and sells) on their account foreign currencies or bills.

Dealing
Trading (buying and selling) on the Stock exchange or commodities exchange;
Specially equipped area where dealers carry out their transactions.

Debit card
Bank card, which debits the holder's account immediately through BORICA system. The holder can effect the following on-line transactions: cash withdrawal through an ATM; payment of goods and services through POS; cash withdrawal through POS; utility bills payment; payment of goods and services in Internet; transfer of amounts between the client's accounts in the same bank; balance of the card account and change of PIN code.

Debtor
Person or company who owes money, loan, etc. for repayment.

Demand (Sight) deposit
Bank deposit that can be withdrawn on demand or transferred to another account with no special notice.

Demand Deposit
Money placed in a Bank for safekeeping or to earn interest, which can be taken out whenever the client decides.

Deposit
Money or bills placed in a bank for safekeeping or to earn interest under agreed terms. Ref. Demand/Term deposit.

Deposit account
Account in which money paid in or deposited by a customer earns interest at a rate which varies with the bank’s base rate; deposited amount is withdrawn with preliminary notice or observing other payment terms against issuing a deposit certificate.

Deposit certificate
Certificate issued by banks for large deposits, which cannot be withdrawn “on demand”. Deposit certificates can be traded until the last buyer gets the total deposited amount together with the interest due at maturity by the bank.

Deposit with additional instalments
Deposit facilities with an option additional instalments to be deposited, retaining the accrued interest.

Depository
Centralized depository for placing various types of bills for trading operations with no physical transfer of the latter, but through computer based systems and certificates.

Discount
Amount by which a financial instrument is sold for less than its nominal value.

Diversification
Strategic approach of establishing multi-profile production or by placing money/securities in a wide spread of investment portfolio (different types of shares or savings so as to spread the risk of loss).

Dividents
Part of a company's annual profit after tax, paid to shareholders, whereas preference share receive their dividents as a preliminary set percentage of their issuing value, while for ordinary ones it depends on the profit volume.

E

Effective annual yield
Actual annual incomes shown as a percentage after adjustments have been made.

Effective currency rate
Currency rate for measurement the value of a currency by comparing a “currency basket” to the basic currency rate, calculated as a weighted average value of the currency rate, introduced as an index.

Effective interest rate
Real interest on a loan or deposit.

Embossment
Having the cardholder’s data with raised printing (esp. by pressing) on his card, for making mechanical imprint of the data, when accepting the card from a trader.

ePay.bg
Internet based system for card payments to local traders of utility bills, commodities or services from commercial internet sites. www.ePay.bg (menu “Traders”) contains a list of traders accepting bank cards.

ePayVoice
A payment system for utility bills (electricity, water, central heating, telephone and information on the balance account) effected with a bank card through a phone.

Exchange rate
Price at which bills or foreign currency is exchanged for another.

G

GOODWILL
Good reputation of a company, which can be calculated as a part of a company's asset value, though separate from its tangible asset value (the goodwill can include the trading reputation, the patents, the trade names used, the value of a “good site”, etc. and is very difficult to establish accurately).

Gross national product
Annual value of goods and services in a country including income from other countries.

Guarantee (US – guaranty)
A form of security to a bank loan.

Guaranteed loan
An arrangement securing the regular repayment of a loan.

H

Hedging
Protection against possible loss of credit risk through term deals, while the existing risk on the contracted deal or the existing position can be avoided or minimized by paying an agreed price of the hedging.

Home deposit
A special deposit for purchasing or building a home.

Home Mortgage loan
Loan by a bank to help someone buy, build or refurbish a home, securitised with a mortgage on the debt site.

I

IBAN (International Bank Account Number)

Standard international bank account code in EU. It has been introduced as obligatory in Bulgaria since 2006 for local and international payments.

Im-printer
A device for effecting payments for goods and services at a trader or for drawing cash by using a bank card off-line. Contrary to the POS terminal, where the information on the magnetic tape is used, for im-printer payments an embossed print is made of the bank card.

Indebtedness
Being in debt or owing money.

Investment loan
Loan for reconstruction, construction or refurbishment of buildings or purchase of equipment.

Investments
Placing of money so that it will increase in value and produce an income (either in an asset, such as building, or by purchasing shares, placing money on deposits, etc.)

Irrevocable letter of credit
Letter of credit, which cannot be cancelled or changed.

Issuing bank
A Bank, which is licensed by BNB or the relevant international card organization to issue bank cards.

L

Letter of Credit
Letter from a bank authorizing payment of a certain sum to a person or company (beneficiary) upon submission of papers verifying the L/C terms

Letter of Credit Account
A bank account for payments effected by the client to a third party, who is duly authorized to get the amounts paid, when observing certain terms, as set in the L/C.

Loan
Agreed amount granted to a borrower under contracted terms and interest rate. Loans can also be effected in the form of a bill of exchange, promissory notes, and commercial instruments, similar to bills.

Loan
Lent amount of money, granted by a bank or a financial institution to an individual or a company under contracted terms of repayment and security. The loan can be a credit, revolving, overdraft facility or other form.

Loan capital
Part of company's capital which is a loan from an outside source and which has to be repaid at a later date; this can be also issued bills.

Loan contract
Agreement with a bank for granting a loan facility (amount) to a borrower under contracted terms, while the borrower shall utilize the extended amount as agreed and shall repay it in due time together with the accrued interest.

Loan interest
Interest paid by a borrower to a lender on the money granted in the form of a loan facility.

Loan Principal
The net amount of a loan, lended by a bank, on which interest is accrued.

Local debit card
A debit card, issued by a local bank and which can be used only on the territory of Bulgaria.

Long-term loan
Loan which will be repaid in more than three-years term.

M

Mortgage
Legal agreement where someone lends money to another person so that he can buy a property, the latter being a security on the loan granted.

Mortgage loan
Loan with a property as security, which covers the principal and the interest due.

P

Paid-up capital
Capital of a company, the total amount actually paid up on the issued capital. This amount is equal to the amount of the issued capital less the value of calls in arrears.

Payee
A person or company, whose name is on a cheque and are to be paid the ordered amount.

Promissory note
A formal document in writing, containing an unconditional engagement, signed by the person making the note, to pay a certain amount of money on a certain date, or to the order of a сcertain named person, or to the bearer of the document.

Q

Quotation
Setting market value through a range of prices at which traders offer to buy and sell a particular share for a trading period at the Stock exchange.

R

Return on Assets
An index for assessing a bank’s assets, where profit is shown as a percentage after taxation to all assets.

Return on investments
Interest or dividents shown as percentage of the money invested; shares, bonds, deposits bought with invested money.

S

S.W.I.F.T.
Global communications network - Society for Worldwide Interbank Financial Telecommunications – for exchange of financial information on transfers, L/C, bank guarantees, checks, operations, etc.

Secondary market
Market where existing securities are traded repeatedly as opposed to primary market, where new issues are launched.

Share
A bill, verifying the holder’s right of ownership of the company’s capital. The share gives a voting right, right on dividend of the distributed profits, and on a liquidation quota in case the company is closed. Shares are registered, dematerialized, and of a bearer.

Shareholder
Person who owns shares in a company.

Shareholding company
A company, whose capital is invested in shares by its shareholders. The company’s profit is distributed among the shareholders (dividends) in compliance with the number of their shares.

Short-term loan
Loan usu. with one-year maturity term.

Sight (Demand) deposit
Bank deposit that can be withdrawn on demand or transferred to another account with no special notice.

Spot date
Current day when partners (economic agents) pay for and get currency for trading.

Stock Еxchange
Special, organized whole-sale trading of standard stocks or shares, bonds, gold, foreign currency, etc.

SWIFT Code
Code of 8 to 11 digits – SWIFT BIC (SWIFT Bank Identifier Code, which is unique for any bank, member of the Society fro Worldwide Interbank Financial Telecommunications – S.W.I.F.T.

T

Trader’s bank
Accepting bank, which has a POS terminal or an Im-printer installed with the trader so that the latter can accept card payments.


Treasury bills
A bill issued by the Ministry of Finance usu. with three- or six-month maturity of the date of issue to obtain short-term financing of government expenses.

V

Value date
The date as of which interest is accrued on a bank account (saving, deposit, credit, etc.)

W

Working capital loan
Loans extended under one-year term needed by a business to keep trading or to carry on production (commodities, materials, fuels, etc.)

Y

Yield
Money produced as a return on investment, shown as a percentage of the money invested.