Socialist MP Backs Faster Deposit Repayment for Supervised Banks

Business » FINANCE | July 30, 2014, Wednesday // 13:59| Views: 1127 | Comments: 7
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Bulgaria: Socialist MP Backs Faster Deposit Repayment for Supervised Banks BSP MP Yanaki Stoilov, photo by BGNES

The Bulgarian Socialist Party proposes that the Bulgarian Deposit Insurance Fund start repaying deposits of up to EUR100 000 two months after the suspension of activity of a bank.

BSP MP Yanaki Stoilov explained Wednesday that the party had submitted changes to the Bank Deposit Guarantee Act as a result of the adoption of the budget update at the first reading with the support of center-right party GERB (Citizens for European Development of Bulgaria) and liberal party Movement for Rights and Freedoms (DPS).

Stoilov, as cited by investor.bg, emphasized that the budget update envisaged an increase in the government debt by BGN 3.4 B, meaning that a sum of BGN 1.7 B could be earmarked for boosting the resources of the BDIF.

Before Tuesday's vote on the budget amendments in Parliament, he had warned that his party would embark on the step if the bill was passed.

However, Stoilov's comments came before the announcement of GERB leader Boyko Borisov that GERB was leaving Parliament and the budget update would not be adopted conclusively before the dissolution of the current National Assembly on August 6.

"The legal changes oblige the BDIF to start repaying guaranteed deposits to all people who are legally entitled to it, after a certain banking institution has been placed under special monitoring for over two months and it has suspended activities," Stoilov said.

He added that the provisions were applicable to Bulgaria's Corporate Commercial Bank (KTB), which was placed under conservatorship by the Bulgarian National Bank on June 20.

The socialist MP argued that it was unnecessary to wait for the bankruptcy procedure to end and the depositors of KTB could claim their money from the BDIF on September 21 instead.

He emphasized that, regardless of the launch or a stabilization procedure or a bankruptcy procedure for a bank, it would still owe the money to the BDIF, which had paid depositors.

Stoilov explained that the changes would allow thousands of depositors to access their money several months earlier than the existing deadline.

The BSP MP admitted that the bill was unlikely to be approved by the current Parliament but added that it was important for the matter to be decided for the sake of similar cases in the future.

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Tags: Corporate Commercial Bank, KTB, Yanaki Stoilov, Bulgarian Socialist Party, BSP, Bulgarian National Bank, budget update, state budget act
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» To the forumComments (7)
#7
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#6
R W - 31 Jul 2014 // 16:11:57

EDC

Your view regards Seedy' s comment might well be correct but it up to him/her to say exactly how it was intended.

I think people forget that when you deposit into the Bank the question is asked as to the origins of the money. As we were and thereafter completed a form as a declaration. We also have kept the transfer documentation from our UK Bank to here after the sale of our house so we can prove the origins.

People like Seedy should not paint everyone with the same brush. Not everyone is corrupt or using the banks to hide money. Like us they may just need the little interest they can make to live on out here.

God knows it's not the easiest place to survive, they won't even employ you unless you can speak the language. At least in the UK they are given an opportunity of employment but the EU rules do not appear to be equal. So life is hard enough without people's Assests being frozen because the BNB don't know how to handle a bank run without causing so many hardship. The bank turned to them for help and in return gets closed stopping it from doing any business so how does it survive? yet they didn't close FI bank?

I asked the BNB to publicly inform people where the runs took place I.e just in Sofia, the cities or was it at all branches of KTB? No reply.

There is no transparency regarding the information. Where are the Shareholders now in all this and why do they not come forward to save their bank and financial interests?

It's almost as if some want this bank to fail, why so that others can buy the Assests cheap and make a bundle for themselves.

We will never know the truth behind all this but most like us just want our deposits back so we can get on with our daily lifes.

Like most others I guess, we just don't need people like Seedy making comments that make the situation more unbearable

Use the forum to inform people or share positive ideas to resolve matters like this, not wind others up.

#5
EDC - 31 Jul 2014 // 08:08:31

Perhaps the hold up in paying out is because some FAT CATS in official positions with large deposits are going to lose a lot of money and they need to find a way round the problem behind closed doors ,to get their money moved out first and then they can open up to the public .
There has been a smell around this mess and the delays are making it worse as people are now concerned as to what is happening what is being covered up the longer it takes the deeper the concerns
The government of course are taking their sweet time about it as they do not wish to be seen around the world as failing the people .

#4
EDC - 31 Jul 2014 // 07:57:24

R,W
I think Seedy was making a general comment rather than suggesting your deposits as personal,
His and i agree with him that some of the accounts held at the bank MAY BE money obtained by illegal transactions it is up to the auditors and government to investigate the accounts to insure they the officials are not cleaning what was unclean >these accounts no doubt contain sums well in excess of the limit and that is why some are not happy because they will lose a lot of money ,but for the average person who is trying to get his salary and pay his bills there is not reason to withhold their account funds .The BANK IS CLOSED the Government has taken control and therefore NO REASON to stop Withdrawals under the EU and Bulgarian regulations.
Why the wait , Why take so long , ?

#3
R W - 30 Jul 2014 // 17:33:38

Seedy

We moved to Bulgaria in 2012 to retire after selling our home in the UK, that's where our deposit comes from. Not that it's any of your business.

We have paid taxes in this country since 2007 and our accounts are all above board annually checked costing us a further 250 lv.

So don't question our deposits. Keep your comments to yourself those in Glasshouses shouldn't throw stones.....

#2
Seedy - 30 Jul 2014 // 15:34:29

Prove that your deposits aren't the proceeds of crime first.... ;)

#1
R W - 30 Jul 2014 // 15:00:09

An interesting read but come on politicians this is only a suggestion, get yourselves a backbone and make a decision to prevent any more hardship to your citizens and local businesses.

The right move has now been suggested, repay the depositors who fall into the max range of the BDIF so that we can get on with our lives and secure our money within other Bamks to start to leading a normal life again, pay bills etc and to earn the interest we are missing out on from our own hard earnt monies.

Come on Bulgaria repay our deposits.