03.12.2014

Today, Minister of Finance Vladislav Goranov signed the contract for granting a loan from the central budget to the Bank Deposit Insurance Fund (BDIF) for the purpose of financing the shortage of funds of the BDIF to pay the insured deposits in CCB AD (licence revoked).

According to the contract, the loan is for up to 5.5 years, there is a possibility for the loan to be disbursed in tranches, the interest rate is fixed at 2.95%, interest is to be paid once a year, one-off repayment by 15.04.2020 is foreseen, and also a possibility for early repayment - in parts or in full. Additional one-off or regular charges or commissions in relation to the loan disbursement and service, or for its early repayment are not expected. It is planned the future receivables of BDIF from the banks for annual premium contributions and receivables for which the Fund has subrogation in accordance with the Bank Deposits Guarantee Law to be used as collateral for which a relevant pledge contract will be signed.

We remind that the loan aims to contribute not only to ensuring the BDIF liquidity, but also to the smooth payment of the insured deposits in the bank with revoked licence. By Decision No 797 of 2 December 2014 the Council of Ministers approved the granting of the loan and mandated Minister Goranov to sign the contract of behalf of the Republic of Bulgaria.