All banks transferred 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.

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, Citibank Europe Plc. – Bulgaria Branch, ING Bank N.V. — Sofia Branch and I?BANK AG — 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 2014 annual premiums from member banks, amounting to BGN 263.4 million, as of date BDIF funds total BGN 2.104 billion. This ranks BDIF among the best capitalized funds according to international standards’, said Mr. Rossen Nikolov, Chairman of BDIF Management Board.

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.