All banks transferred duly the annual premium contributions payable to the Bulgarian Deposit Insurance Fund (BDIF). Under the Law on Bank Deposit Guarantee member banks shall pay annually, by 31 March in the current year, premium contributions amounting to 0.5 per cent of the eligible deposits for the preceding year, determined on an average daily basis. Insurable deposits in foreign currency are recalculated in levs at the exchange rate of the Bulgarian National Bank for the respective day. In the event of delayed payment of contribution, banks pay statutory penalty interest to the BDIF.

Exempt from paying premium contributions are EU/EEA branches, and third countries bank branches on condition that their home country scheme provides equivalent level and scope of coverage. Alpha Bank – Bulgaria Branch, BNP Paribas S.A. – Sofia Branch ING Bank N.V. – Sofia Branch and Regional Investment Bank – Bulgaria Branch do not participate in the Bulgarian deposit insurance system and respectively do not pay premium contributions to the BDIF.

Mr. Rossen Nikolov, Chairman of BDIF Management Board, announced that after the transfer of annual premiums for 2011 amounting to BGN 195.1 million BDIF funds total BGN 1302.9 million.

BDIF accumulated funds shall be primarily used for repayment of the insured deposit amounts of physical persons and legal entities in the event of a bank failure. Currently the level of coverage is BGN 196,000 per depositor per bank. Insured are deposits in levs and in foreign currency. By guaranteeing depositors’ funds BDIF contributes to maintaining the stability of and confidence in the banking system in Bulgaria.