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.

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Tags: World Bank, Bulgarian Deposit Insurance Fund, BDIF, Corporate Commercial Bank, KTB, Corpbank
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