Bolstering the Bulgarian financial sector
In order to boost the resilience of the financial sector in Bulgaria, in 2016 the EBRD extended a €300 million loan to the country’s sole deposit insurer.
The financing will help the Bulgarian Deposit Insurance Fund, an independent public institution, optimise its funding structure and replenish its funding base following a major bank failure in 2014. The loan was conditional on the Fund implementing measures in line with new legislative frameworks for deposit insurance and bank recovery and resolution.
The project increases the financial independence and long-term sustainability of the Fund. By reinforcing the deposit insurance system, it also raises confidence in the Bulgarian banking sector and supports the efficient functioning of the country’s financial market.