World Bank OKs Loan to Bulgaria's Deposit Insurance Fund

Business » FINANCE | March 22, 2016, Tuesday // 08:10
Bulgaria: World Bank OKs Loan to Bulgaria's Deposit Insurance Fund File photo, EPA/BGNES

The World Bank has said it approved on Friday a EUR 300 M loan to the Bulgarian Deposit Insurance Fund (BDIF).

The 10.5-year loan has a grace period of six years. 

By receiving the funds, the BDIF will be able to help ease the burden on the state budget and increase its reserve assets, contributing to a higher trust of depositors in the banking system, the Bulgarian National Radio quotes Tony Thompson, World Bank Country Manager for Bulgaria, the Czech Republic and Slovakia, as saying.

The BDIF used the bulk of its reserves to cover billions in assets of deposit holders at insolvent Corporate Commercial Bank (KTB), which was placed under supervision from the central bank in June 2014.

As of end-2015, the BDIF has BGN 486 M (EUR 248 M) at hand, most of them in state securities. The government says it needs a total of EUR 500 M to ensure stability of the banking system in the long-term.

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: World Bank, Bulgarian Deposit Insurance Fund, BDIF, Corporate Commercial Bank, KTB, Corpbank
Advertisement
Advertisement
Expats.bg All Are Welcome! Join Now!
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