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BDIF published its 2010 Annual Report

At a meeting on 20 June 2011, BDIF Management Board took a decision the Bulgarian Deposit Insurance Fund to subscribe to the EFDI Multilateral Memorandum of Understanding. The Multilateral Memorandum of Understanding is a self-regulatory framework, established with the objectives to facilitate and encourage good relations, sharing of information, and active cooperation and collaboration between the Schemes – members of EFDI .

BDIF Chairman Rossen Nikolov and experts participated in the DGS and ICS Funding: the Raising, Management and Use of Funds Conference, which was held on 29-31 May 2011 in Belgrade, Serbia. The conference was concomitant to the General Meeting of the European Forum of Deposit Insurers. The Deposit Insurance Agency of Serbia hosted the events.

In compliance with Art. 12, para 1, item 6 of the Law on Bank Deposit Guarantee the Governing Council of the Bulgarian National Bank approved on 28 April 2011 the Report on the Performance of the 2010 Administrative Expenses Budget and the Administrative Expenses Budget for 2011 of the Bulgarian Deposit Insurance Fund. The reported 2010 BDIF expenses total BGN 1,437,123, which accounts for savings of 8% over the approved 2010 budget. The 2011 Administrative Expenses Budget of the Bulgarian Deposit Insurance Fund amounts to BGN 1,624,400. The budget provides for the daily performance of BDIF mandates and the achievement of the goals set for 2011, ensuing from the passed and forthcoming amendments to the EU Directive on deposit guarantee schemes, as well as BDIF role as a financial safety net player. BDIF major goals in 2011 are creating an automated system for payout of guaranteed deposits, given the shortened deadline for compensating depositors and the requirement for regular testing of the deposit guarantee scheme, along with completing a unified information system ensuring a centralized database for BDIF employment aimed at information management and its application for analyses and reporting.

All banks transferred duly the annual premium contributions payable to the Bulgarian Deposit Insurance Fund (BDIF). 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/EEA 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 ING Bank N.V. – Sofia Branch and Regional Investment Bank – Bulgaria Branch do not participate in the Bulgarian deposit insurance system and respectively do not pay premium contributions to the BDIF. Mr. Rossen Nikolov, Chairman of BDIF Management Board, announced that after the transfer of annual premiums for 2011 amounting to BGN 195.1 million BDIF funds total BGN 1302.9 million. BDIF accumulated funds shall be primarily used for repayment of the insured deposit amounts of physical persons and legal entities in the event of a bank failure. Currently the level of coverage is BGN 196,000 per depositor per bank. Insured are deposits 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 24 March 2011 BDIF hosted a visit to a delegation from Mongolia under a World Bank project for establishing a deposit guarantee scheme in Mongolia. At the meetings with BDIF the topics discussed addressed the legal framework, institutional and administrative capacity building of a deposit insurer. The delegation comprised Parliament members, Mongolian central bank, Ministry of Finance and other institutions’ representatives involved in the deposit guarantee scheme establishment in Mongolia. The delegation met BNB and Ministry of Finance representatives on 25 March 2011.  

Today, 24 March 2011, Rossen Nikolov in his capacity as Chairman of the BDIF Management Board and Nelly Kordovska in her capacity as Vice Chairman of the BDIF Management Board on the grounds of Art. 9, para 2, item 4 of the Law on Bank Deposit Guarantee (LBDG) designated Borislav Stratev and Svetla Kostova for BDIF Management Board members. The Association of Banks in Bulgaria designated Bisser Manolov, ex-BDIF Chairman, for its representative. Management Board members under LBDG should have a university degree in economics or law and professional experience for at least five years in the field of banking, trade in securities, accounting or finance. Borislav Stratev holds a degree in law from Sofia University ‘Kliment Ohridski’ (1974). He has specialized in banking law, capital markets, finance and securities in Austria, Luxembourg, USA and Japan. He has extensive experience in banking law and public administration. From 1991 to 1997 he worked at the Bulgarian National Bank (BNB) as an advisor to the Governor, Head of Legal Department and Member of the BNB Governing Council. He was Chairman of the Board of Directors of Veliko Tarnovo Commercial Bank and a member of the Board of Directors of the Banking Consolidation Company. Mr. Stratev played an instrumental role in developing the deposit guarantee scheme and was the first Chairman of the Management Board of the then deposit insurance scheme in 1996-1997. His contribution was significant in the drafting BNB and banking acts which introduced the currency board arrangements in Bulgaria in 1997. From 1997 to 2010 he was with Deloitte Bulgaria, occupying successively the positions of Director, Partner and Managing Partner. Between 1997 - 2005 he was a member of the Board of the National Endowment Fund ‘13 Centuries of Bulgaria’. Currently he is an attorney. He is a member of the Board of the Bulgarian Business Leaders Forum. Svetla Kostova is an economist with professional experience in public finance. She has an extensive career with the Ministry of Finance. She currently holds the position of Director of the Treasury Directorate. Ms. Kostova is in charge of the organisation, coordination and analysis of the current execution of the approved by the National Assembly state budget, the operational management of aggregated cash flows in the Treasury Single Account system, the methodology regarding the accounting and payment procedures of budget entities and the government finance statistics. Earlier today the Deputy Prime Minister and Minister of Finance Simeon Djankov met the newly assembled Management Board members. The newly designated BDIF Chairman Rossen Nikolov offered to host a follow-up meeting with the Minister of Finance Simeon Djankov and the Bulgarian National Bank Governor Ivan Iskrov at which to discuss the vision of the new management for the BDIF governance.

On 17 March 2011 the Council of Ministers designated Rossen Nikolov as Chairman of BDIF Management Board due to expiration of term of office of the previous Chairman. Rossen Nikolov holds a master’s degree in Economy and IT from the University of National and World Economy. His entire career has been with Post Bank (EFG Eurobank Bulgaria) where he passed all stages from front desk employee to Head of Treasury Department in the Capital Markets Directorate. Mr. Nikolov has been actively trading in the domestic and international markets of debt instruments since 2000. On the occasion of 10th Anniversary of the Bulgarian Dealers’ Association he was the guild’s choice for Dealer of the Decade.

31 December 2010 enforces an amendment to the Law on Bank Deposit Guarantee, under which the BDIF guarantees payout in full of deposit amounts, regardless of their number and size, up to BGN 196,000 per depositor per bank. Guaranteed are deposits of physical persons and legal entities in national and foreign currencies.