The Deposit Insurance Fund (DIF) is created in January 1999 aiming at providing guarantee to deposits in banks as in this way it maintains the credibility in the banking system and supports the economic growth and the general macroeconomic stability in the country. The Fund guarantees the deposits on banks’ accounts of any type in BGN and foreign currency to Bulgarian and foreign physical persons and legal persons. Exceptions are made for definite legal persons in accordance with the Law on Bank Deposit Guaranty.
The maximum amount of the guarantee on deposits to a client in a certain bank is up to 100 000 BGN or their equivalency if the deposit is in foreign currency. It is important to know that at this amount the accrued interest at the date of the BNB decision for revoking the license for the bank activity is also included.
The investments of the clients of banks acting as investment intermediaries in financial instruments, e.g. securities, derivatives and others as described in the Law on Markets in Financial Instruments are guaranteed by the Investor Compensation Fund (ICF) as in the Law on Public Offering of Securities exceptions for some legal persons are foreseen. The compensation is paid in case of a failure of investment intermediary if it is unable to pay out its duties to the client. The maximum amount of compensation provided by the Fund is 90% of the amount of client’s assets but not more than 30 000 BGN. It is foreseen that in 2010 the maximum amount of compensation is going to reach 40 000 BGN.