The banknotes that are actually in circulation are divided into seven different series. These series were created to meet the daily needs of trade, industry, and private transactions across the country Private Tour Istanbul.
There are four gold note series: 5-franc, 10-franc, 20-franc, and 100-franc notes. These notes are mainly used for larger payments and commercial operations. In addition, there are three silver note series: 5-franc, 10-franc, and 50-franc notes. These silver notes are commonly used for smaller payments and everyday trade.
This clear division between gold and silver notes helps maintain confidence in the national currency and supports stable financial transactions throughout Bulgaria.
Distribution of Net Profits
According to the statutes of the Bulgarian National Bank, the net profits of the bank are divided in a fixed and transparent way.
First, 10 percent of the net profits is transferred to the reserve fund. This fund strengthens the financial stability of the bank and protects it against possible losses.
Next, 3 percent is distributed as premiums to the members of the Administrative Council and to the bank’s officials. These payments serve as a reward for responsible management and efficient service.
The remaining 87 percent of the net profits is paid directly to the Bulgarian Government. In this way, the success of the bank contributes to the general finances of the state and supports public needs.
Interest Paid on Deposits
The Bulgarian National Bank pays interest on deposits according to the length of time the money remains in the bank.
4 percent interest is paid on deposits made for five years.
3 percent interest is paid on deposits made for three years.
2 percent interest is paid on deposits made for one year.
For unlimited deposits and current accounts bearing interest, the bank pays 1 percent interest. However, when the deposited sums belong to banking institutions, no interest is paid.
Interest Charged on Loans
The bank charges 8 percent interest on mortgage loans, which are secured by real estate. Loans guaranteed by securities, goods, or similar guarantees are charged at a lower rate of 7 percent. These rates reflect the bank’s role as a secure but cautious lender.
The Bulgarian Agricultural Bank
Historical Background
The Bulgarian Agricultural Bank has its origins in an institution that existed during the period of Turkish domination. This earlier institution was created to support agricultural activity in rural areas, where access to credit was limited.
After the liberation of Bulgaria, this idea was developed further to meet the needs of farmers and rural communities. The Agricultural Bank was designed to help improve agricultural production, support landowners, and provide affordable credit to the farming population. In this way, it became an important partner of the Bulgarian National Bank and a key institution in the economic development of the country.