Glossary
Sovereign Credit Risk
The risk that a country will fail to meet its financial obligations, such as repayment of external debt, interest on bonds, or other forms of loans provided by international institutions or investors.
Special Purpose Investment Company (SPIC)
A specialised investment company established under the Special Purpose Investment Companies and Securitisation Companies Act, whose main activity is investing the raised funds in real estate or receivables (forfaiting, securitisation). The company is obliged to distribute at least 90% of its profit in the form of dividends to its shareholders. A special purpose investment company is traded on the stock exchange and offers investors the opportunity to participate in the real estate or receivables market without the need to directly purchase or manage such assets. The activities of these companies are regulated by the Financial Supervision Commission, and they are exempt from corporate tax in order to encourage this type of investment.
Specific Bequest (Legacy)
A testamentary disposition that relates to a particular asset or property. It confers the status of legatee on the person in whose favour it is made. This differs from a general bequest, which pertains not to a specific asset, but to the whole or a fractional part of the testator’s estate.
Specific Legatee (legatee under a specific bequest)
A person who receives a specifically designated asset (such as an item, sum of money, or right) under a will, but does not inherit the entire estate or a fractional share of it. The legatee may obtain the bequest only through the heir.
Standard European Consumer Credit Information (SECCI) Form
Standard document presenting the characteristics of credit products for their easy comparison, which lenders are required to provide to the consumer for a consumer credit, in accordance with Directive 2008/48/EC.
State Fees
Mandatory payments to the state for the use of various government services and administrative procedures, such as issuing documents, registrations, and other official actions. For example, when purchasing real estate through a mortgage loan, the registration agency collects fees for registering the notarized deed and the mortgage.
State Social Insurance (SSI)
A compulsory social insurance system organized and administered by the state. It is funded through contributions from employees, employers, and the state, and provides pensions, benefits, and other social payments. SSI is the first pillar of Bulgaria’s pension system and operates on a pay-as-you-go principle. Contributions are calculated based on insurable income and flow into the Pensions Fund, from which current pensions are paid. Other funds include General Sickness and Maternity, Occupational Accidents and Diseases, and Unemployment, which provide the respective benefits.
Static 3D Secure Password (code)
A password preset by the bank for online payments, which can be combined with a dynamic (one-time) password sent via SMS or generated by an m-token or mobile app for the specific transaction.
Stock
A general term for the equity ownership in a corporation representing all the shares issued by that company.
Structured Deposit
A hybrid product between a savings and an investment product, combining the security of a deposit with the potential for higher returns. In this type of deposit, the return is linked to the performance of another financial market asset — for example, stocks or stock indices.
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