Bulgarian Parliament Approves BGN 1.2 B Loans to Deposit Insurance Fund

Business » FINANCE | June 9, 2016, Thursday // 14:35
Bulgaria: Bulgarian Parliament Approves BGN 1.2 B Loans to Deposit Insurance Fund The plenary chamber of the Bulgarian National Assembly. Photo: BGNES

The parliament approved on Thursday the taking out of two new loans amounting to a total of BGN 1.2 B, which will be provided for the needs of the Bulgarian Deposit Insurance Fund (BDIF).

The International Bank for Reconstruction and Development (IBRD) and the European Bank for Reconstruction and Development (EBRD) will each provide BGN 600 M in loans to BDIF.

The loans will go to filling the reserves of the fund which were significantly depleted after the insolvency of Corporate Commercial Bank (KTB) in 2014 when the fund had to repay the insured deposits at KTB.

The loans, which are guaranteed by the Bulgarian government, are to contribute to the greater financial independence and long-term sustainability of BDIF.

This is expected to increase confidence in Bulgaria's banking sector and support the efficient functioning of the financial market.

The funds are aimed at optimising the funding structure of the fund and strengthening its financial and institutional capacity in order to enable it to meet its deposit insurance and bank resolution obligations.

The largest opposition Bulgarian Socialist Party (BSP) and the left-wing Alternative for Bulgarian Revival (ABV), which last month withdrew its support for the government, voted against the loans.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: Bulgaria, BDIF, loan, deposit, KTB, IBRD, EBRD, banking, BSP, ABV

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria