Press Releases

All banks transferred duly the annual premium contributions payable to the Bulgarian Deposit Insurance Fund. 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. As this year 31 March was a holiday (Sunday), the deadline for transferring annual premiums was extended to 1 April inclusive. Exempt from paying premium contributions are EU 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 I?BANK GmbH — Sofia Branch do not participate in the Bulgarian deposit insurance system. Respectively, those branches do not pay premium contributions to the BDIF, since as per EU requirements deposit protection is provided by the home country scheme. ‘With the transfer of 2013 annual premiums from member banks, amounting to BGN 246.2 million, as of date BDIF funds total BGN 1.828 billion. This ranks BDIF among the best capitalized funds according to international standards’, said Mr. Rossen Nikolov, Chairman of BDIF Management Board. ‘BDIF works in close collaboration with other participants in the financial stability system — the Ministry of Finance and the Bulgarian National Bank, on the new regulatory framework for crisis management, as proposed by the European Commission. At a time when European institutions discuss the proposal on the recovery and resolution of credit institutions, it is prudent to consider a more effective utilization of the capacity of the deposit guarantee scheme. The high level of capitalization of BDIF is a premise that the establishment of a resolution fund for credit institutions will not lead to new regulatory burdens on the banking system and thereby increase of the cost of crediting in the economy,’ added Mr. Nikolov. BDIF accumulated funds shall be used for payout of the insured deposit amounts in the event of a bank failure. The level of coverage is BGN 196,000 per depositor per bank. Insured are deposits of physical persons and legal entities 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.

Today the Governing Council of the Bulgarian National Bank approved the Annual budget for administrative expenses of the Bulgarian Deposit Insurance Fund for 2013, presented by BDIF Management Board. The budget amounts to BGN 1,674,960.

The Bulgarian Deposit Insurance Fund (BDIF) posted its 2011 Annual Report, comprising the BDIF Management Annual Activity Report and the annual financial statements. BDIF Management Annual Activity Report gives an overview of BDIF’s operations in 2011 in the major areas of development outlined under the 2011-2014 Strategy: timely access of depositors to their guaranteed amounts, alternative methods for bank resolution, risk management, adequate funding and safe and transparent asset management, effective communication, good corporate practices and transparent and efficient governance. The budget and planning for 2012 are also accounted for. Major financial ratios, an overview on the Bulgarian banking system in 2011, the deposit guarantee in Bulgaria and a list of the BDIF member banks, investment policy and asset management, and the application of the Core Principles for Effective Deposit Insurance Systems are provided in appendices. BDIF Financial Statements are prepared in compliance with the International Financial Reporting Standards and certified by an independent auditor. BDIF 2011 Annual Report is available here.

In compliance with Art. 12, para. 1, item 6 of the Law on Bank Deposit Guarantee the Governing Council of the Bulgarian National Bank at its meeting on 15 May 2012 approved the Report on the implementation of BDIF administrative expenses budget for 2011 presented by BDIF Management Board. According to the report BDIF has achieved the targets set for 2011, establishing itself as a guarantor of depositors funds in banks. BDIF administrative expenses budget for 2011 amounted to BGN 1,624,400, whereas its performance as at 31 December 2011 stood at BGN 1,395,554, which is a saving of 14%.

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. As this year 31 March was not a business day (Saturday), the deadline for transferring annual premiums was extended to 2 April inclusive. Exempt from paying premium contributions are EU 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, I?BANK GmbH – 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. ‘After the transfer of annual premiums for 2012 amounting to BGN 218.6 million, BDIF funds total BGN 1554.3 million’ announced Mr. Rossen Nikolov, Chairman of BDIF Management Board. 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.

Today, 20 December 2011, at its meeting, the Governing Council of the Bulgarian National Bank approved the Annual budget for administrative expenses of the Bulgarian Deposit Insurance Fund for 2012, presented by BDIF Management Board. The budget amounts to BGN 1,715,022.

BDIF Chairman, Mr. Rosen Nikolov, was elected a member of the Executive Council of the International Association of Deposit Insurers (IADI) with a three-year term of office. Elections took place during the Tenth Annual Conference and the Annual General Meeting of IADI. The Deposit Guarantee Fund of Poland hosted the meetings held from 17 to 21 October inWarsaw. The theme of this year’s conference was “Beyond the crisis: the need to strengthen financial stability framework.” Participants discussed the impact of the global economic situation and national financial safety nets. Discussed were, accordingly, options to assist problematic banks within crisis management framework and approaches to deal with systematically important financial institutions (too big to fail). The second conference day was devoted to the role of deposit-guarantee schemes in the financial safety nets and for financial inclusion. At the forum BDIF and Deposit Guarantee Fund of Ukraine signed a Memorandum of Understanding, which formalizes the framework for cooperation and information exchange between the two institutions.

In compliance with Art. 12, para 1, item 6 of the Law on Bank Deposit Guarantee the Governing Council of the Bulgarian National Bank approved on 28 April 2011 the Report on the Performance of the 2010 Administrative Expenses Budget and the Administrative Expenses Budget for 2011 of the Bulgarian Deposit Insurance Fund. The reported 2010 BDIF expenses total BGN 1,437,123, which accounts for savings of 8% over the approved 2010 budget. The 2011 Administrative Expenses Budget of the Bulgarian Deposit Insurance Fund amounts to BGN 1,624,400. The budget provides for the daily performance of BDIF mandates and the achievement of the goals set for 2011, ensuing from the passed and forthcoming amendments to the EU Directive on deposit guarantee schemes, as well as BDIF role as a financial safety net player. BDIF major goals in 2011 are creating an automated system for payout of guaranteed deposits, given the shortened deadline for compensating depositors and the requirement for regular testing of the deposit guarantee scheme, along with completing a unified information system ensuring a centralized database for BDIF employment aimed at information management and its application for analyses and reporting.

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.

Today, 24 March 2011, Rossen Nikolov in his capacity as Chairman of the BDIF Management Board and Nelly Kordovska in her capacity as Vice Chairman of the BDIF Management Board on the grounds of Art. 9, para 2, item 4 of the Law on Bank Deposit Guarantee (LBDG) designated Borislav Stratev and Svetla Kostova for BDIF Management Board members. The Association of Banks in Bulgaria designated Bisser Manolov, ex-BDIF Chairman, for its representative. Management Board members under LBDG should have a university degree in economics or law and professional experience for at least five years in the field of banking, trade in securities, accounting or finance. Borislav Stratev holds a degree in law from Sofia University ‘Kliment Ohridski’ (1974). He has specialized in banking law, capital markets, finance and securities in Austria, Luxembourg, USA and Japan. He has extensive experience in banking law and public administration. From 1991 to 1997 he worked at the Bulgarian National Bank (BNB) as an advisor to the Governor, Head of Legal Department and Member of the BNB Governing Council. He was Chairman of the Board of Directors of Veliko Tarnovo Commercial Bank and a member of the Board of Directors of the Banking Consolidation Company. Mr. Stratev played an instrumental role in developing the deposit guarantee scheme and was the first Chairman of the Management Board of the then deposit insurance scheme in 1996-1997. His contribution was significant in the drafting BNB and banking acts which introduced the currency board arrangements in Bulgaria in 1997. From 1997 to 2010 he was with Deloitte Bulgaria, occupying successively the positions of Director, Partner and Managing Partner. Between 1997 – 2005 he was a member of the Board of the National Endowment Fund ‘13 Centuries of Bulgaria’. Currently he is an attorney. He is a member of the Board of the Bulgarian Business Leaders Forum. Svetla Kostova is an economist with professional experience in public finance. She has an extensive career with the Ministry of Finance. She currently holds the position of Director of the Treasury Directorate. Ms. Kostova is in charge of the organisation, coordination and analysis of the current execution of the approved by the National Assembly state budget, the operational management of aggregated cash flows in the Treasury Single Account system, the methodology regarding the accounting and payment procedures of budget entities and the government finance statistics. Earlier today the Deputy Prime Minister and Minister of Finance Simeon Djankov met the newly assembled Management Board members. The newly designated BDIF Chairman Rossen Nikolov offered to host a follow-up meeting with the Minister of Finance Simeon Djankov and the Bulgarian National Bank Governor Ivan Iskrov at which to discuss the vision of the new management for the BDIF governance.