Deposit Guarantee Scheme Bulgaria

Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Bulgaria Has Failed

 

Deposit Guarantee Scheme (Bulgaria): the Bulgarian Deposit Insurance Fund (BDIF) ensures bank deposit protection for eligible account holders at local deposit taking credit institutions. The fund reimburses insured deposits when a supervised BDIF member fails or is likely to fail and deposits become unavailable. The BDIF consequently contributes to the stability of and the confidence in the Bulgarian financial system.

Secured Deposit Limit: BGN 196.000 (100.000 Euro).

Temporarily Covered Balances: Additional protection is provided up to BGN 250.000 (127.823 Euro) for a term of three months. Such additional protection is limited to 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 labor 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.

Claim Eligibility: Deposits (credit balances) held by natural persons and companies at BNB licensed banks in Bulgaria are secured by the BDIF when they become unavailable. An unavailable deposit is claimed and due but has not been paid by the bank as per the applicable legal or contractual provisions. Excluded from coverage are deposits held by financial institutions, investment intermediaries and funds, insurers and reinsurers, pension schemes, budget organizations, guarantee funds and other public authorities.

Claim Filing Procedures: The start of the claim filing and repayment procedures is announced by the BDIF no later than to days prior to the commencement of the payout process. Verification of claim eligibility and the payout of insured deposits is executed by the BDIF in collaboration with a local BDIF member acting as a servicing bank. Repayment to eligible creditors is made in cash or by bank transfer into an BDIF members account.

Applicable Timeframes: Repayment of the insured balance is made within seven business days after the claim is filed and approved. Additional protection is available for a period of three months only and repayment and processing may take longer than the seven business days that applies to the reimbursement of the standard secured deposit limit. Objections against a DGS claim rejection or disputes over the amount to be repaid must be filed within a period of three months. The BDIF is active for a maximum of five years.

Repayment Conditions: The BDIF repays insured deposits in its local currency, the Bulgarian lev.

DGS Claim Rejections and Other Challenges: Deposits up to BGN 20 (EUR 10) are not repaid provided that there have been no operations on them over the preceding 24 months.

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