Glossary
Recourse Claim (Right of Recourse)
A claim through which a person who has paid another’s obligation or assumed liability on behalf of another seeks reimbursement or compensation from the actual debtor. In insurance, for example, a recourse claim is filed by the insurer against the party responsible for the loss, after paying compensation to its insured client.
Reference Interest Rate (RIR)
A variable component of the interest rate that follows market dynamics, usually based on an index (e.g., EURIBOR) or a rate set by the Bulgarian National Bank. Credit institutions are obliged to inform their clients about upcoming changes in the RIR, as these affect the interest rate and consequently the amount of instalments on variable-rate loans.
Refinancing
Replacing an existing loan with a new one, usually under more favourable terms for the client. This may include a lower interest rate, a longer repayment period, reduced monthly instalments, or the consolidation of multiple obligations into a single loan. The main goal is to ease the financial burden on the borrower and optimize the management of their liabilities.
Regulated Market
A licensed multilateral system organized and/or operated by a market operator, where buyers and sellers of financial instruments such as shares, bonds, and other securities meet to execute transactions under strict rules and regulations. An example of a regulated market in Bulgaria is the Bulgarian Stock Exchange.
Reliability
A fundamental principle in managing pension savings by pension insurance companies, focusing on investment diversification, a conservative approach to strategy selection, professional management, regulatory oversight, transparency and accountability, and actuarial assessment.
Rent - glossary for children
Money paid to use someone else’s home or property.
Repayment
The full or partial settlement of a debt. The settlement of a debt in full or in part. Typically, the borrower makes payments of principal and interest on a loan or other obligations to a financial institution according to a pre- prepared repayment schedule, most often through monthly instalments.
Repayment Schedule
A pre-prepared schedule that specifies the amount and due dates of all instalments on a loan or credit over its entire repayment period. The plan shows the amount of each payment, its allocation between principal and interest, and the outstanding balance after each instalment.
Replacement Value
The basis for calculating compensation, where the compensation amount is sufficient to restore the damaged or destroyed property.
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