Bulgaria's deposit insurance fund starts payout of Corpbank deposits

SOFIA (Bulgaria), December 4 (SeeNews) - Bulgaria's Deposit Insurance Fund (BDIF) started on Thursday paying out guaranteed deposits with insolvent Corporate Commercial Bank  [BUL:6C9], one of the banks through which depositors can get their savings said on Thursday.

On June 20, Bulgaria's central bank placed Corporate Commercial bank (Corpbank) under special supervision over risk of insolvency after it was notified that Corpbank had run out of liquidity and had suspended payments and all types of banking operations. On November 6, the central bank revoked Corpbank's licence as the lender was found to have a negative own capital of 3.75 billion levs ($2.36 billion/1.92 billion euro) as of September 30.

Guaranteed deposits of up to 100,000 euro will be repaid through branches of local banks DSK, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisen Bank Bulgaria, Allianz Bank Bulgaria, UniCredit Bulbank, Central Cooperative Bank, Cibank, and First Investment Bank, the BDIF said in late November.

Guaranteed deposits at Corpbank total 3.7 billion levs.

Certain branches of Raiffeisen Bank Bulgaria have started repayment of guaranteed deposits held with Corpbank, a press officer of Raiffeisen Bank Bulgaria told SeeNews over the phone on Thursday.

Earlier this month the government decided to lend up to 2.0 billion levs in budget funds to BDIF to be used to finance the shortage in funds that BDIF is facing for the repayment of guaranteed deposits held by Corpbank. The loan has a term of up to 5.5 years and a fixed interest rate of 2.95%.

($=0.8114 euro)