The court ruled against unilateral interest rate increase under a credit agreement between a Bulgarian bank and corporate borrower

TTP successfully defended a commercial entity in a dispute with a leading Bulgarian bank, part of an international group, on the basis that the bank had increased unilaterally the interest rate agreed upon in the credit agreement.

Notably, such disputes involving a corporate borrowers are usually decided by the courts in favor of the lending banks. The judgment in the case litigated by us is amongst the very few where the court ruled in favor of the corporate borrower, thus resulting as an obligation of the bank to return the interest it had collected unfoundedly under the credit agreement.