BDIF guarantees full repayment of depositor’s funds with each individual bank, regardless of the number and size of the deposits, up to BGN 196,000 (EUR 100,000). This amount includes the principal and the interest accrued up to the date of the BNB’s resolution on a bank’s license revocation or on the declaration of unavailability of deposits with a bank. Additional protection up to BGN 250,000 (EUR 127,823) for a term of three months is provided for the following types of deposits: deposits of individuals arising from transactions with real estates for residential purposes; deposits of individuals arising from amounts paid in connection with conclusion or dissolution of marriage, termination of a labour contract or civil service contract, disability, or death; and deposits arising from insurance or social insurance payments or from payment of compensation for damages from crimes or reversed sentence.
The BDIF insures bank deposits of physical persons and legal entities both in levs and in foreign currency. Deposits are all funds in a bank account opened in the name of one or more persons: time and demanddeposits, current and savings account, debit or credit cards accounts. Deposit insurance is applicable also to credit balances, which the bank shall repay to its customers under the terms provide by law or a contract signed.
By virtue of the law, deposits of banks and financial institutions; insurers and reinsurers; pension insurance companies and funds for mandatory and voluntary pension insurance; investment intermediaries and firms; budget organisations and guarantee funds, including the BDIF, are excluded from guarantee. Deposits connected to ‘money laundering’ are also excluded from guarantee, provided the sentence is effective. No guarantee is provided on deposits whose holder has not been identified as of the date of license revocation or declaration if unavailability of deposits. Deposits up to BGN 20 (EUR 10) are not repaid provided that there have been no operations on them over the preceding 24 months
Deposits of one depositor with different banks are guaranteed separately, i.e. for each bank up to the coverage provided by the BDIF, i.e. up to BGN 196,000 (EUR 100,000) with the anyone of these banks.
All deposits of one depositor with the same bank are added together and guaranteed up to the coverage provided by the BDIF, i.e. up to BGN 196,000 (EUR 100,000) with the same bank.
Deposits with branches of foreign, non EU-member states, banks are also covered by BDIF, provided that the home country of such a bank does not have a deposit insurance scheme, the scheme does not apply to foreign banks’ branches or it provides a level or scope of coverage, which is less than that insured by the BDIF. Deposits with branches of EU-member states’ banks are guaranteed by the respective deposit guarantee scheme of the home country, and are thus not covered by BDIF.
All banks that authorized by the Bulgarian National Bank to accept deposits as well as branches of Bulgarian banks in other EU member states.
The BDIF is a legal entity, established under the Law on Bank Deposit Guarantee of 1998 and functioning since January 1999.
Under the new Law on Bank Deposit Guarantee BDIF main functions are, as follows: • to determine and collect annual and extraordinary contributions from deposit insurance scheme member banks; • to invest its funds in deposits with the BNB and in highly liquid and low risk debt securities in accordance with the requirements of the Law on Bank Deposit Guarantee; • to repay in-full the guaranteed deposit amounts of physical persons and legal entities up to BGN 196,000 (EUR 100,000); • to protect the creditors’ interests and to control the trustees’ activities in failed member banks, according to the Law on Bank Bankruptcy; • to take part in the financing of the resolution of credit institutions, pursuant to the Law on Recovery and Resolution of Credit Institutions and Investment Firms.
The BDIF is managed by a Management Board, consisting of five members. The Board Chairman is designated by the Council of Ministers, the Vice-Chairman – by the BNB Governing Council, one member – by the Association of Banks in Bulgaria, and two members – jointly by the Chairman and the Vice-Chairman of the Fund’s Management Board.