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40% of the deposits are guaranteed

Submitted on Tuesday, 7 October 2008No Comment

‘Bulgaria has to be prepared to guarantee the bank system and the deposits of citizens and firms. Currently, the country can guarantee 40% of the deposits of individuals and companies from the Fund for guarantee of citizens and firms’, said on a press conference the under secretary of Bulgarian New Democracy Lidiya Shuleva. She added that one billion leva are needed for this guarantee and another 2 billion for the bank system.

‘If the budget surplus is used as a reserve, Bulgaria might just not be affected by the world financial crisis’, commented Shuleva.

‘This fund was created to be used in normal conditions, but there never was a supposition that all banks in Bulgaria might need money at the same time.’

She asked the question how can deposits of total amount 33 billion leva be guaranteed when the fiscal reserve is only one third of this sum.

When asked whether there are threatened banks in Bulgaria, Lidiya Shuleva didn’t want to make any prognoses, but according to her there needs to be a clear plan for action in situation of crisis and the government needs to make a statement about the needed financial reserves.

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