Deposit Insurance Fund Ready To Pay After BNB Takes Away KTB License

Bulgaria's Deposit Insurance Fund (BDIF) is ready to pay the deposits of up to EUR 100 000 in case the troubled Corporate Commercial Bank (KTB) loses its license.

According to the DIF press statement, which came in response to the infringement proceedings opened by the European Commission against Bulgaria for delaying the payment of the guaranteed deposits.

The BDIF stated that the Bulgarian National Bank (BNB) is the sole institution responsible for bank supervision and making decisions regarding the situation of KTB and its filial bank Victoria (formerly Credit Agricole Bulgaria).

"The Bulgarian Deposit Insurance Fund pays out depositors' funds with banks up to the guaranteed limit of BGN 196 000 (EUR 100 000) in case of license revocation by the Bulgarian National Bank," the statement said.

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 ‘Victoria'. BDIF, on its part, is technically prepared to fulfill its mandate to pay out guaranteed deposits within the statutory deadline.

As of the date of placement of KTB and CB ‘Victoria' 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.

BDIF would like to express its concern and understanding to the affected depositors."