16.10.2014

"The Bank Deposits Guarantee Law will be made consistent with EU legislation in order to avoid the options for untimely payment of deposits. Thus when the inability of a bank to pay is ascertained, irrespective whether its licence is revoked or not, there will be access to the deposits", Minister of Finance Rumen Porodzanov stated at a press conference in the Council of Ministers (CM). Today, the Republic of Bulgaria's position in relation to the letter of 26 September whereby the European Commission (EC) opened an infringement procedure was considered at the meeting of the Government.

"The topic was discussed within the information stage throughout August and September. The moment the special supervision of CCB was extended by further 2 months, the EC automatically started the infringement procedure", Porodzanov explained. "Within the framework of the pre-litigation procedure we have to eliminate two inconsistencies - the legislative one and the provision of access to the insured deposits", the Finance Minister added. The position that is to be sent today to the EC has been prepared by the competent institutions in the country that have bearing to the issues raised, the Ministry of Finance (MoF), the Bulgarian National Bank (BNB) and the Bank Deposit Insurance Fund (BDIF), and considered by the Council on European Affairs. The main commitments made by Bulgaria are as follows: finalisation and adoption of the already prepared draft of a new Bank Deposits Guarantee Law whereby the inconsistencies with the EU law have been eliminated; revision of the legal framework in respect of the special supervision measures the BNB takes as a competent supervisory body in the banking field and taking of measures to ensure as soon as possible the depositors' access to the insured deposits in the two banks.

The Finance Minister explained that the draft of the Bank Deposits Guarantee Law was in a working stage and would be sent in advance to the EC by 30 October. After agreeing it with the Commission, at the beginning of November the draft will be submitted to the CM and tabled as a priority for consideration by the National Assembly (NA).

In respect of the topic of which is the institution responsible for the preparation of a plan for the restructuring of CCB the Minister of Finance expressed his explicit opinion that it was within the competencies of BNB and the conservators. The position in principle of the MoF is that given the exclusive powers of BNB as an independent supervisory authority of credit institutions the assessment and the preparation of a restructuring plan is the sole responsibility of BNB. "The Minister of Finance has specific powers under the State Aid Law - he/she is the body communicating with the EC in respect of each and any potential State aid that has to be notified by each ministry, bank, etc.", Minister Porodzanov explained.

"I would like to explicitly state in relation to the allegations that someone has prepared a draft law to pay insured deposits by means of bonds that such a thing has not been considered or written at the MoF", the Minister of Finance stated and added that such a draft had never been submitted or considered by the CM. He noted that the topic of paying insured deposits by means of bonds or any other form of securities was not of present interest. According to him this is speculation.