The project will allow BDIF to meet the objectives set up in the new Law on Bank Deposit Guarantee and the Law on Recovery and Resolution of Credit Institutions and Investment Firms.
The proposed financing to BDIF aims to enhance the Fund s liquidity profile, diversify the Fund s liabilities structure and support the reforms undertaken in the Bulgarian deposit insurance system in view of the new legislation framework.
The EBRD loan will serve as a financing tool with a tenor and structure meeting the long-term funding needs of BDIF.
Currently, the BDIF
performing portfolio is comprised of primarily senior secured loans (77.
Chair, as cited by the BGNES news agency, pointed out that the pace of the payment of insured deposits at KTB was decelerating.
In addition to drawing upon the liquidity facilities, BDIF
increased the aggregate principal amount of the income notes, a first loss tranche, over the course of November 2008-January 2009, increasing it from $224.
BDIF respects the role of the Bulgarian National Bank as the single institution responsible for the implementation of banking supervision and authorised to take a decision so as to solve the problems with the KTB and CB aVictoriaa.
As of the date of placement of KTB and CB aVictoriaa under special supervision BDIF, in close cooperation with the Ministry of Finance and the banking industry, is working for market solutions to make up for the shortfall of resources shall payout of guaranteed deposits with both banks be triggered.
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.
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 added that the government expected the resources of the BDIF
, at BGN 1.
The capital of the entire banking group is to be increased with state resources from the Bulgarian Development Bank and the BDIF