Raiffeisenbank lowers the cost of funds (COF) on all loans with interest rates based on the Cost of Funds Index. For loans in BGN COF decreases by 85 basis points to 6.65%, and for loans in EUR the reduction is by 70 basis points to 5.20% on an annual basis. The decrease is valid for all loans to individuals, small and mid-sized enterprises (SME) and corporate customers with loans based on COF plus spread.

The new lower cost of funds for existing loans based on this index will influence the interest rates gradually at maturity dates after 25 September 2012. The reduction will not affect the interest rates on loans formed on the bases of the SOFIBOR (for loans in BGN) и EURIBOR (for loans in EUR) indexes.
“The change in the cost of funds follows the interest rate calculating methodology published on the bank’s website. The reduction results mainly from the lower interest rates on deposits and the drop of the popular indexes in the money markets for BGN and EUR”, commented Momchil Andreev, chairperson of the Management Board and executive director of Raiffeisenbank.

The cost of funds is the interest rate, at which the bank provides financing to customers, plus the expenses on the management of the maturity structure of the assets and the liabilities of the bank and other legal expenses.