Translated version of this PSD: Bulgarian
The EBRD is considering providing a EUR 250 million long-term loan to the Bulgarian Deposit Insurance Fund (“BDIF”, “the Fund”), guaranteed by the Republic of Bulgaria. The loan will support the optimisation of BDIF’s funding structure and the long-term sustainability of the Fund’s operations.
The project’s objective is to support the ongoing reforms in the deposit insurance system. The project will allow BDIF to meet the objectives set up in the new Law on Bank Deposit Guarantee and the Law on Recovery and Resolution of Credit Institutions and Investment Firms.
A strong deposit insurance system is a key component of an effectively functioning financial market. The proposed financing to BDIF aims to enhance the Fund’s liquidity profile, diversify the Fund’s liabilities structure and support the reforms undertaken in the Bulgarian deposit insurance system in view of the new legislation framework. The project will thus contribute to bolstering the confidence in the Bulgarian banking sector.
The EBRD loan will serve as a financing tool with a tenor and structure meeting the long-term funding needs of BDIF. Furthermore, the project foresees organisational and procedural improvements to align the financial safety-net framework in the country to international best practices.
The expected transition impact rating is ‘strong to good’.
BULGARIAN DEPOSIT INSURANCE FUND
The BDIF is an independent public institution established under the Law on Bank Deposit Guarantee in January 1999. Its mission is to contribute to the stability of and confidence in the financial system in Bulgaria by providing bank deposits guarantee, assisting the efficient process of credit institutions restructuring and protecting creditors’ interests in bank bankruptcy proceedings.
EBRD Finance Summary
A loan of EUR 300 million
BDIF is seeking to raise a total of EUR 600 million and is discussing a parallel financing with another international financial institution.
Environmental and Social Summary
Categorised FI. There are no material environmental or social risks associated with the proposed project. The Fund will need to comply with the Bank’s PR2 and PR4 and submit a report annually to the Bank on the implementation of the PRs.
The Bank is discussing potential technical cooperation with the Fund, aimed at supporting the project’s objectives.
Client Company Contact Information
Bulgarian Deposit Insurance Fund
Tel: +359 2 917 2049; Fax: +359 2 952 1100
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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