site.btaPremium Contributions to Deposit Insurance Fund Paid in Full

Premium Contributions to Deposit Insurance Fund Paid in Full

Sofia, April 2 (BTA) - All banks participating in the Bulgarian
Deposit Insurance Fund (BDIF) have paid their annual
contributions which are worth 258.09 million leva, the Fund said
on Wednesday.

Under the Bank Deposit Guarantee Act, no later than March 31,
the banks should pay premium contributions equal to 0.5 percent
of the total amount of the deposit base for the preceding year,
determined on an average daily basis.

Subsidiaries of EU, as well non-EU banks, do not pay
contributions to the BDIF as under EU requirements the deposits
are guaranteed in the country where the parent bank is seated.
These include the Bulgarian branches of Alpha Bank, BNP Paribas,
ING Bank, Isbank and Citibank Europe.

Meanwhile, the Bulgarian National Bank (BNB, the country's
central bank) reported that the BDIF saved 306,980 leva in
administrative expenses in 2014, which was 17 per cent of its
administration budget. The budget, approved by BNB in May 2014,
amounted to 1,671,860 leva. In November 2014, BNB approved an
increase in the BDIF's administrative expenses by 100,000 leva
in order to accommodate an obligation for the BDIF to pay the
costs of interbank money transfers in the process of repaying
the guaranteed deposits with Corporate Commercial Bank.

The BDIF's administrative expenses amounted to 1,464,879.60
leva. Those 17 per cent of expenses were saved thanks to good
management and optimization of costs, BNB said.