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What is the limit and scope of guarantee

BDIF guarantees full repayment of depositor’s funds with each individual bank, regardless of the number and amount of the deposits, up to BGN 196,000 (EUR 100,000) in case where the BNB revokes the license of a bank, or declares the deposits with the bank unavailable, or where due to an act of a judicial authority depositors are prevented from access to their funds with a bank for reasons directly related to its financial standing.

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up to BGN 196,000

core deposit guarantee

The guarantee sum, BGN 196,000, includes the principal and the interest accrued up to the date of the BNB’s or the judicial authority act.

Mr. Brown has two bank deposits: one in the amount of BGN 80,000 and another in the amount of BGN 55,000.The total amount of his deposits is BGN 135,000. BDIF will repay the principal of BGN 135,000, plus the respective accrued interest by the date of license revocation or declaration of unavailability of deposits.

Deposits of physical persons and legal entities with the same bank are guaranteed separately up to BGN 196,000 (EUR 100,000). Summed up are only deposits of a natural person who is also a sole trader, as the latter's status is not that of a legal entity.

Mr. Patterson and his company ‘Patterson Engineering’ LTD have two bank deposits: a personal one of BGN 30,000 and one in the company’s name in the amount of BGN 180,000. In the payout Mr. Patterson and ‘Patterson Engineering’ LTD will receive the full amounts on both deposits.

Mr. Jacobs has a personal deposit in the amount of BGN 25,000. He is also registered as ‘JBC’ sole trader, which has a deposit in the amount of BGN 50,000. In the event of reimbursement, the personal deposit of Mr. Jacobs and the deposit of ‘JBC’ will be summed up and BGN 75,000 plus the respective interests accrued will be paid out.

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up to BGN 250,000

additional protection for up to 3 months

Additional protection up to BGN 250,000 (EUR 127,823) for a term of three months is provided for the following deposits: deposits of individuals arising from transactions with real estates for residential purposes; deposits of individuals arising from amounts paid in connection with conclusion or dissolution of marriage, termination of a labour contract or civil service contract, disability, or death; and deposits arising from insurance or social insurance payments or from payment of compensation for damages from crimes or reversed sentence.

Mr. Martins owns a personal deposit in the amount of BGN 10,000 and a current account, opened two months before, where he had deposited BGN 300,000 received from a residential property sale. At payout the BDIF will compensate Mr. Martins with BGN 10,000 and the accrued interest thereon, as well as another BGN 250,000, as the latter, following a residential property transaction, is subject to a separate guarantee for three months of their receipt.

Entitled to guarantee in case of a deposit account opened in favour of a third party is the beneficiary, or the account holder. In case the latter has other deposits with the same bank, they are added up.

Mr. Thompson has three deposits with a bank, one in the amount of BGN 90,000, another in the amount of BGN 80,000 and yet another opened in his favor in the amount of BGN 40,000. The sum total of his deposits is BGN 210,000. In this case BDIF will compensate Mr. Thompson with BGN 196,000.

In a joint account with another person with the same bank, the portion of the joint account is aggregated with the other deposits a person owns in order to calculate the guaranteed amount.

Mrs. Johnson has two deposits, one in her name in the amount of BGN 96,000 and another jointly with her husband in the amount of BGN 200,000. The joint portion of her deposit, if the deposit contract does not stipulate else, is half, i.e. BGN 100,000. Thus, BDIF will repay Mrs. Johnson BGN 196,000, regardless of the interest accrued on the deposits.

Deposits in different currencies of a depositor with the same bank are added together and repaid the lev equivalent at the BNB exchange rate as of the date of the BNB’s or a judicial authority act.

Mrs. Maple has two bank deposits, a BGN one in the amount of 15,000 and another in euro worth EUR 20,000. The total repayable is BGN 54,116.6 (BGN 15,000 plus EUR 20,000 multiplied by BGN 1.95583), save for interest accrued.

Depositors shall be aware that BDIF does not owe interest on rapayable amounts. 

Not repayable are sums on accounts, where the balance is less than BGN 20, and where there have not been dispositive actions for the 24 months preceding the BNB’s or a judicial authority act.

In the event of a merger or acquisition of two or more banks, the deposits with each bank are guaranteed up to 6 months after the merger.

Upon the expiration of this period the deposits of a person with both banks are summed up.

Covered deposits are repaid regardless of whether the deposit holder also has liabilities (credit) to the same bank.

A deposit which is encumbered or serves as collateral is included when calculating the guaranteed amount, where the guaranteed share due is not to be repaid until the said encumbrance or security has been lifted.

For the portion above the coverage limit depositors are satisfied from the bank’s property in accordance with the applicable legislation.

Local branches of EU banks do not participate in the system as they are guaranteed by their home country scheme. At present they are:

FAQ

BDIF guarantees full repayment of depositor’s funds with each individual bank, regardless of the number and size of the deposits, up to BGN 196,000 (EUR 100,000). This amount includes the principal and the interest accrued up to the date of the BNB’s resolution on a bank’s license revocation or on the declaration of unavailability of deposits with a bank. Additional protection up to BGN 250,000 (EUR 127,823) for a term of three months is provided for the following types of deposits: deposits of individuals arising from transactions with real estates for residential purposes; deposits of individuals arising from amounts paid in connection with conclusion or dissolution of marriage, termination of a labour contract or civil service contract, disability, or death; and deposits arising from insurance or social insurance payments or from payment of compensation for damages from crimes or reversed sentence.

The BDIF insures bank deposits of physical persons and legal entities both in levs and in foreign currency. Deposits are all funds in a bank account opened in the name of one or more persons: time and demanddeposits, current and savings account, debit or credit cards accounts. Deposit insurance is applicable also to credit balances, which the bank shall repay to its customers under the terms provide by law or a contract signed.

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