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Today, 13 May 2014, the Governing Council of the Bulgarian National Bank approved the Report on the performance of BDIF administrative expenses budget for 2013. The Report was presented by BDIF Management Board in compliance with Art. 12, para. 1, item 6 of the Law on Bank Deposit Guarantee. BDIF administrative expenses budget for 2013 amounted to BGN 1,674,960, whereas its performance as of 31 December 2013 stood at BGN 1,374,048.

All banks transferred the annual premium contributions payable to the Bulgarian Deposit Insurance Fund. Under the Law on Bank Deposit Guarantee member banks shall pay annually, by 31 March in the current year, premium contributions amounting to 0.5 per cent of the eligible deposits for the preceding year, determined on an average daily basis. Insurable deposits in foreign currency are recalculated in levs at the exchange rate of the Bulgarian National Bank for the respective day. In the event of delayed payment of contribution, banks pay statutory penalty interest to the BDIF. Exempt from paying premium contributions are EU branches, and third countries bank branches on condition that their home country scheme provides equivalent level and scope of coverage. Alpha Bank — Bulgaria Branch, BNP Paribas S.A. — Sofia Branch, Citibank Europe Plc. – Bulgaria Branch, ING Bank N.V. — Sofia Branch and I?BANK AG — Sofia Branch do not participate in the Bulgarian deposit insurance system. Respectively, those branches do not pay premium contributions to the BDIF, since as per EU requirements deposit protection is provided by the home country scheme. ‘With the transfer of 2014 annual premiums from member banks, amounting to BGN 263.4 million, as of date BDIF funds total BGN 2.104 billion. This ranks BDIF among the best capitalized funds according to international standards’, said Mr. Rossen Nikolov, Chairman of BDIF Management Board. BDIF accumulated funds shall be used for payout of the insured deposit amounts in the event of a bank failure. The level of coverage is BGN 196,000 per depositor per bank. Insured are deposits of physical persons and legal entities in levs and in foreign currency. By guaranteeing depositors’ funds BDIF contributes to maintaining the stability of and confidence in the banking system in Bulgaria.

On 19 February 2014 the Chairman of the Bulgarian Deposit Insurance Fund Rossen Nikolov and the Director of the Hellenic Deposit & Investment Guarantee Fund Georgia Karageorgi signed a bilateral agreement at BDIF premises in Sofia. The objectives of the Agreement are to facilitate and encourage good relations between the Hellenic Deposit & Investment Guarantee Fund (HDIGF) and the Bulgarian Deposit Insurance Fund (BDIF), including coordination of mass communication activities, the efficient handling of inquiries regarding the payout, communication with depositors and provision of information in relation to a bank failure. Under the Agreement BDIF will serve as a ‘post-box’ for HDIGF with regard to HDIGF’s member banks operating a branch in Bulgaria. In compliance with the Greek legislation, in the event of a bank failure, HDIGF has the responsibility to carry out the repayment of compensation to depositors with the Bulgarian branch. Therefore BDIF will support HDIGF in the discharge of its functions by acting on behalf of HDIGF in the provision of information to depositors and mass media and in the handling of enquiries regarding the payout. In addition, HDIGF commits to select an appropriate manner for the payout in Bulgaria of the deposits with the failed bank. Ensuring coordinated efforts in reaching depositors with clear and prompt information, the Agreement contributes to financial stability in both countries.

Today the Governing Council of the Bulgarian National Bank approved the Annual budget for administrative expenses of the Bulgarian Deposit Insurance Fund for 2014, presented by BDIF Management Board. The budget amounts to BGN 1,671,860.

Representatives of the Bank Deposit Guarantee Fund of Romania paid a working visit to BDIF on 21 November 2013. At the meetings held between BDIF Chairman, Mr. Rossen Nikolov and FGDB Chairman, Mr. Eugen Dijmerescu, and experts from both institutions were discuss topics of mutual interest, which included the role of DGS in maintaining financial stability and in the bank restructuring framework, as well as practical issues related to risk assessment, investment of DGS funds, payout of insured deposits and public awareness. The parties agreed on holding a Regional conference for the DGSs in the Balkans on their role and problems in the light of the new directives on DGS and BRRD which will be held in the spring of 2014.

On 9 October 2013 the Chairman of the Bulgarian Deposit Insurance Fund Rossen Nikolov and the Rector of the University of National and World Economy Prof. Dr. Statty Stattev signed a Memorandum of Cooperation between the two institutions. Members of the Rector’s Council attended the signing ceremony at the University of National and World Economy (UNWE) in Sofia. The Memorandum provides for internship and professional realization opportunities for the students, participation in scientific projects, joint organization of scientific events, elaboration of expert knowledge, development of joint academic programs, analysis and research in the field of deposit insurance and bank bankruptcy. Prof. Dr. Emilia Milanova will coordinate the implementation of this Memorandum of Coordination on behalf of the UNWE.

BDIF Chairman Rossen Nikolov participated in The Eurofi Financial Forum held on 12-13 September 2013 in Vilnius. Lithuania. The Forum entitled ‘Improving the resilience of the financial sector to foster EU economic recovery’ was organized in association with the Lithuanian EU Presidency. Discussions focused on proposals aimed at improving the resilience of financial institutions and facilitating their recovery and resolution; measures required to foster an appropriate financing of the EU economy as well as ongoing reforms in the banking, insurance and capital markets sectors. Exchange of views with members of the Ecofin was held during the first day and with the members of the Eurogroup in the second day. More than 300 public sector and industry representatives, EU institutions and international organisations took part in the event.

Today, 6 June 2013, the Governing Council of the Bulgarian National Bank approved the Report on the implementation of BDIF administrative expenses budget for 2012. The Report was presented by BDIF Management Board in compliance with Art. 12, para. 1, item 6 of the Law on Bank Deposit Guarantee. BDIF administrative expenses budget for 2012 amounted to BGN 1,715,022, whereas its performance as of 31 December 2012 stood at BGN 1, 454,620, which is a saving of 15%.

The Bulgarian Deposit Insurance Fund posted its 2012 Annual Report. BDIF Management Annual Activity Report and the annual financial statements for the review year are now available in electronic form in Bulgarian and English. BDIF Management Annual Activity Report renders the implementation of the priorities outlined under the 2011-2014 Governance Strategy: timely access of depositors to their guaranteed amounts, alternative methods for bank resolution, risk management, adequate funding and safe and transparent asset management, effective communication and maintenance of depositors’ confidence, good corporate practices and transparent and effective governance. 2013 budget and plans are also accounted for. ‘BDIF 2012 Annual Report reflects our ongoing efforts to improve the performance of the institution and to facilitate a better understanding of deposit guarantee by the depositors’, said Mr. Rossen Nikolov, BDIF Chairman, adding: ‘Streamlining operations with a view to providing better deposit protection, along with boosting depositors’ confidence in banks and BDIF alike helps maintain the national financial system stability.’ The Appendices to the BDIF Management Annual Activity Report present the major financial indicators, make a review of the economic environment, the banking system in 2012 and the deposit guarantee scheme in Bulgaria, the investment policy and asset management, and give an outline of the international legal seminar hosted. BDIF Financial Statements are prepared in compliance with the International Financial Reporting Standards and certified by an independent auditor.